Correlation Between Commercial Vehicle and SUPER GROUP
Can any of the company-specific risk be diversified away by investing in both Commercial Vehicle and SUPER GROUP 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 Commercial Vehicle and SUPER GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial Vehicle Group and SUPER GROUP LTD, you can compare the effects of market volatilities on Commercial Vehicle and SUPER GROUP 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 Commercial Vehicle with a short position of SUPER GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Vehicle and SUPER GROUP.
Diversification Opportunities for Commercial Vehicle and SUPER GROUP
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Commercial and SUPER is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Vehicle Group and SUPER GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER GROUP LTD and Commercial Vehicle 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 Commercial Vehicle Group are associated (or correlated) with SUPER GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER GROUP LTD has no effect on the direction of Commercial Vehicle i.e., Commercial Vehicle and SUPER GROUP go up and down completely randomly.
Pair Corralation between Commercial Vehicle and SUPER GROUP
Assuming the 90 days trading horizon Commercial Vehicle Group is expected to under-perform the SUPER GROUP. But the stock apears to be less risky and, when comparing its historical volatility, Commercial Vehicle Group is 2.09 times less risky than SUPER GROUP. The stock trades about -0.05 of its potential returns per unit of risk. The SUPER GROUP LTD is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 37.00 in SUPER GROUP LTD on August 28, 2024 and sell it today you would earn a total of 111.00 from holding SUPER GROUP LTD or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commercial Vehicle Group vs. SUPER GROUP LTD
Performance |
| Timeline |
| Commercial Vehicle |
| SUPER GROUP LTD |
Commercial Vehicle and SUPER GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Vehicle and SUPER GROUP
The main advantage of trading using opposite Commercial Vehicle and SUPER GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Vehicle position performs unexpectedly, SUPER GROUP 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 GROUP will offset losses from the drop in SUPER GROUP's long position.| Commercial Vehicle vs. MTI WIRELESS EDGE | Commercial Vehicle vs. SALESFORCE INC CDR | Commercial Vehicle vs. Ribbon Communications | Commercial Vehicle vs. CODERE ONLINE LUX |
| SUPER GROUP vs. Commercial Vehicle Group | SUPER GROUP vs. Daido Steel Co | SUPER GROUP vs. ALGOMA STEEL GROUP | SUPER GROUP vs. CVW CLEANTECH INC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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