Correlation Between HAMMONIA Schiffsholding and Superior Plus
Can any of the company-specific risk be diversified away by investing in both HAMMONIA Schiffsholding and Superior Plus 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 HAMMONIA Schiffsholding and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAMMONIA Schiffsholding AG and Superior Plus Corp, you can compare the effects of market volatilities on HAMMONIA Schiffsholding and Superior Plus 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 HAMMONIA Schiffsholding with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAMMONIA Schiffsholding and Superior Plus.
Diversification Opportunities for HAMMONIA Schiffsholding and Superior Plus
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HAMMONIA and Superior is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HAMMONIA Schiffsholding AG and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding AG are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of HAMMONIA Schiffsholding i.e., HAMMONIA Schiffsholding and Superior Plus go up and down completely randomly.
Pair Corralation between HAMMONIA Schiffsholding and Superior Plus
Assuming the 90 days trading horizon HAMMONIA Schiffsholding is expected to generate 1.15 times less return on investment than Superior Plus. But when comparing it to its historical volatility, HAMMONIA Schiffsholding AG is 2.37 times less risky than Superior Plus. It trades about 0.1 of its potential returns per unit of risk. Superior Plus Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Superior Plus Corp on September 5, 2024 and sell it today you would earn a total of 12.00 from holding Superior Plus Corp or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAMMONIA Schiffsholding AG vs. Superior Plus Corp
Performance |
| Timeline |
| HAMMONIA Schiffsholding |
| Superior Plus Corp |
HAMMONIA Schiffsholding and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAMMONIA Schiffsholding and Superior Plus
The main advantage of trading using opposite HAMMONIA Schiffsholding and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAMMONIA Schiffsholding position performs unexpectedly, Superior Plus 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 Plus will offset losses from the drop in Superior Plus' long position.| HAMMONIA Schiffsholding vs. Superior Plus Corp | HAMMONIA Schiffsholding vs. NMI Holdings | HAMMONIA Schiffsholding vs. Origin Agritech | HAMMONIA Schiffsholding vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. Mobilezone Holding AG | Superior Plus vs. Citic Telecom International | Superior Plus vs. Tower One Wireless | Superior Plus vs. Ribbon Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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