Correlation Between Carters and Superior Uniform
Can any of the company-specific risk be diversified away by investing in both Carters and Superior Uniform 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 Carters and Superior Uniform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carters and Superior Uniform Group, you can compare the effects of market volatilities on Carters and Superior Uniform 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 Carters with a short position of Superior Uniform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carters and Superior Uniform.
Diversification Opportunities for Carters and Superior Uniform
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carters and Superior is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Carters and Superior Uniform Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Uniform and Carters 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 Carters are associated (or correlated) with Superior Uniform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Uniform has no effect on the direction of Carters i.e., Carters and Superior Uniform go up and down completely randomly.
Pair Corralation between Carters and Superior Uniform
Considering the 90-day investment horizon Carters is expected to under-perform the Superior Uniform. But the stock apears to be less risky and, when comparing its historical volatility, Carters is 1.37 times less risky than Superior Uniform. The stock trades about -0.04 of its potential returns per unit of risk. The Superior Uniform Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,489 in Superior Uniform Group on August 28, 2024 and sell it today you would earn a total of 194.00 from holding Superior Uniform Group or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carters vs. Superior Uniform Group
Performance |
| Timeline |
| Carters |
| Superior Uniform |
Carters and Superior Uniform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carters and Superior Uniform
The main advantage of trading using opposite Carters and Superior Uniform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carters position performs unexpectedly, Superior Uniform 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 Uniform will offset losses from the drop in Superior Uniform's long position.| Carters vs. VF Corporation | Carters vs. Levi Strauss Co | Carters vs. Under Armour A | Carters vs. Oxford Industries |
| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |