Correlation Between SUPER HI and Global E
Can any of the company-specific risk be diversified away by investing in both SUPER HI and Global E 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 Global E 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 Global E Online, you can compare the effects of market volatilities on SUPER HI and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER HI and Global E.
Diversification Opportunities for SUPER HI and Global E
Very weak diversification
The 3 months correlation between SUPER and Global is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding SUPER HI INTERNATIONAL and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of SUPER HI i.e., SUPER HI and Global E go up and down completely randomly.
Pair Corralation between SUPER HI and Global E
Considering the 90-day investment horizon SUPER HI is expected to generate 1.71 times less return on investment than Global E. In addition to that, SUPER HI is 1.63 times more volatile than Global E Online. It trades about 0.17 of its total potential returns per unit of risk. Global E Online is currently generating about 0.47 per unit of volatility. If you would invest 3,852 in Global E Online on September 4, 2024 and sell it today you would earn a total of 1,393 from holding Global E Online or generate 36.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUPER HI INTERNATIONAL vs. Global E Online
Performance |
| Timeline |
| SUPER HI INTERNATIONAL |
| Global E Online |
SUPER HI and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPER HI and Global E
The main advantage of trading using opposite SUPER HI and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER HI position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.| SUPER HI vs. Global E Online | SUPER HI vs. CarsalesCom Ltd ADR | SUPER HI vs. Xunlei Ltd Adr | SUPER HI vs. Broadstone Net Lease |
| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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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