Correlation Between LESLIES INC and Superior Plus
Can any of the company-specific risk be diversified away by investing in both LESLIES INC 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 LESLIES INC and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LESLIES INC DL and Superior Plus Corp, you can compare the effects of market volatilities on LESLIES INC 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 LESLIES INC with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of LESLIES INC and Superior Plus.
Diversification Opportunities for LESLIES INC and Superior Plus
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LESLIES and Superior is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding LESLIES INC DL 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 LESLIES INC 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 LESLIES INC DL 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 LESLIES INC i.e., LESLIES INC and Superior Plus go up and down completely randomly.
Pair Corralation between LESLIES INC and Superior Plus
Assuming the 90 days horizon LESLIES INC DL is expected to generate 1.17 times more return on investment than Superior Plus. However, LESLIES INC is 1.17 times more volatile than Superior Plus Corp. It trades about 0.07 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.09 per unit of risk. If you would invest 246.00 in LESLIES INC DL on August 25, 2024 and sell it today you would earn a total of 16.00 from holding LESLIES INC DL or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LESLIES INC DL vs. Superior Plus Corp
Performance |
| Timeline |
| LESLIES INC DL |
| Superior Plus Corp |
LESLIES INC and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LESLIES INC and Superior Plus
The main advantage of trading using opposite LESLIES INC and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LESLIES INC 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.| LESLIES INC vs. The Home Depot | LESLIES INC vs. WICKES GROUP PLC | LESLIES INC vs. Superior Plus Corp | LESLIES INC vs. NMI Holdings |
| Superior Plus vs. Fast Retailing Co | Superior Plus vs. Auto Trader Group | Superior Plus vs. Monster Beverage Corp | Superior Plus vs. Suntory Beverage Food |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |