Correlation Between Cooper-Standard Holdings and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Cooper-Standard Holdings and Superior Plus 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 Cooper-Standard Holdings and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Standard Holdings and Superior Plus Corp, you can compare the effects of market volatilities on Cooper-Standard Holdings and Superior Plus 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 Cooper-Standard Holdings with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper-Standard Holdings and Superior Plus.
Diversification Opportunities for Cooper-Standard Holdings and Superior Plus
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cooper-Standard and Superior is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Standard Holdings and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Cooper-Standard Holdings 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 Cooper Standard Holdings are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Cooper-Standard Holdings i.e., Cooper-Standard Holdings and Superior Plus go up and down completely randomly.
Pair Corralation between Cooper-Standard Holdings and Superior Plus
Assuming the 90 days horizon Cooper Standard Holdings is expected to generate 2.22 times more return on investment than Superior Plus. However, Cooper-Standard Holdings is 2.22 times more volatile than Superior Plus Corp. It trades about 0.04 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.02 per unit of risk. If you would invest 1,020 in Cooper Standard Holdings on August 27, 2024 and sell it today you would earn a total of 310.00 from holding Cooper Standard Holdings or generate 30.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Standard Holdings vs. Superior Plus Corp
Performance |
| Timeline |
| Cooper Standard Holdings |
| Superior Plus Corp |
Cooper-Standard Holdings and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper-Standard Holdings and Superior Plus
The main advantage of trading using opposite Cooper-Standard Holdings and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper-Standard Holdings position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Cooper-Standard Holdings vs. Superior Plus Corp | Cooper-Standard Holdings vs. NMI Holdings | Cooper-Standard Holdings vs. Origin Agritech | Cooper-Standard Holdings vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. LION ONE METALS | Superior Plus vs. Zijin Mining Group | Superior Plus vs. SBI Insurance Group | Superior Plus vs. HANOVER INSURANCE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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