Correlation Between British Amer and Super Retail
Can any of the company-specific risk be diversified away by investing in both British Amer and Super Retail at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining British Amer and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bailador Technology Invest and Super Retail Group, you can compare the effects of market volatilities on British Amer and Super Retail and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in British Amer with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and Super Retail.
Diversification Opportunities for British Amer and Super Retail
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between British and Super is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bailador Technology Invest and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group and British Amer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bailador Technology Invest are associated (or correlated) with Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of British Amer i.e., British Amer and Super Retail go up and down completely randomly.
Pair Corralation between British Amer and Super Retail
Assuming the 90 days trading horizon Bailador Technology Invest is expected to generate 0.64 times more return on investment than Super Retail. However, Bailador Technology Invest is 1.56 times less risky than Super Retail. It trades about 0.21 of its potential returns per unit of risk. Super Retail Group is currently generating about 0.1 per unit of risk. If you would invest 120.00 in Bailador Technology Invest on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Bailador Technology Invest or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bailador Technology Invest vs. Super Retail Group
Performance |
| Timeline |
| Bailador Technology |
| Super Retail Group |
British Amer and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and Super Retail
The main advantage of trading using opposite British Amer and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, Super Retail can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Super Retail will offset losses from the drop in Super Retail's long position.| British Amer vs. Insurance Australia Group | British Amer vs. Health and Plant | British Amer vs. Perpetual Credit Income | British Amer vs. Event Hospitality and |
| Super Retail vs. Aneka Tambang Tbk | Super Retail vs. Macquarie Group | Super Retail vs. Macquarie Group Ltd | Super Retail vs. Challenger |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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