Correlation Between Charter Hall and Super Retail
Can any of the company-specific risk be diversified away by investing in both Charter Hall 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 Charter Hall and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Retail and Super Retail Group, you can compare the effects of market volatilities on Charter Hall 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 Charter Hall with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Super Retail.
Diversification Opportunities for Charter Hall and Super Retail
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Charter and Super is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Retail 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 Charter Hall 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 Charter Hall Retail 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 Charter Hall i.e., Charter Hall and Super Retail go up and down completely randomly.
Pair Corralation between Charter Hall and Super Retail
Assuming the 90 days trading horizon Charter Hall Retail is expected to under-perform the Super Retail. But the stock apears to be less risky and, when comparing its historical volatility, Charter Hall Retail is 1.42 times less risky than Super Retail. The stock trades about 0.0 of its potential returns per unit of risk. The Super Retail Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,528 in Super Retail Group on August 29, 2024 and sell it today you would lose (53.00) from holding Super Retail Group or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.53% |
| Values | Daily Returns |
Charter Hall Retail vs. Super Retail Group
Performance |
| Timeline |
| Charter Hall Retail |
| Super Retail Group |
Charter Hall and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and Super Retail
The main advantage of trading using opposite Charter Hall and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall 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.| Charter Hall vs. Australian Unity Office | Charter Hall vs. Champion Iron | Charter Hall vs. Ridley | Charter Hall vs. Peel Mining |
| Super Retail vs. Readytech Holdings | Super Retail vs. IDP Education | Super Retail vs. Richmond Vanadium Technology | Super Retail vs. Kip McGrath Education |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |