Correlation Between SUPER HI and Arcos Dorados
Can any of the company-specific risk be diversified away by investing in both SUPER HI and Arcos Dorados 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 SUPER HI and Arcos Dorados into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPER HI INTERNATIONAL and Arcos Dorados Holdings, you can compare the effects of market volatilities on SUPER HI and Arcos Dorados 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 SUPER HI with a short position of Arcos Dorados. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER HI and Arcos Dorados.
Diversification Opportunities for SUPER HI and Arcos Dorados
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUPER and Arcos is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding SUPER HI INTERNATIONAL and Arcos Dorados Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcos Dorados Holdings and SUPER HI 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 SUPER HI INTERNATIONAL are associated (or correlated) with Arcos Dorados. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcos Dorados Holdings has no effect on the direction of SUPER HI i.e., SUPER HI and Arcos Dorados go up and down completely randomly.
Pair Corralation between SUPER HI and Arcos Dorados
Considering the 90-day investment horizon SUPER HI INTERNATIONAL is expected to under-perform the Arcos Dorados. In addition to that, SUPER HI is 1.94 times more volatile than Arcos Dorados Holdings. It trades about -0.19 of its total potential returns per unit of risk. Arcos Dorados Holdings is currently generating about 0.13 per unit of volatility. If you would invest 750.00 in Arcos Dorados Holdings on November 2, 2024 and sell it today you would earn a total of 34.00 from holding Arcos Dorados Holdings or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUPER HI INTERNATIONAL vs. Arcos Dorados Holdings
Performance |
| Timeline |
| SUPER HI INTERNATIONAL |
| Arcos Dorados Holdings |
SUPER HI and Arcos Dorados Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPER HI and Arcos Dorados
The main advantage of trading using opposite SUPER HI and Arcos Dorados positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER HI position performs unexpectedly, Arcos Dorados 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 Arcos Dorados will offset losses from the drop in Arcos Dorados' long position.| SUPER HI vs. AKITA Drilling | SUPER HI vs. Ryanair Holdings PLC | SUPER HI vs. Grupo Aeroportuario del | SUPER HI vs. Porvair plc |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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