Correlation Between Mount Gibson and Super Retail
Can any of the company-specific risk be diversified away by investing in both Mount Gibson and Super Retail 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 Mount Gibson and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mount Gibson Iron and Super Retail Group, you can compare the effects of market volatilities on Mount Gibson and Super Retail 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 Mount Gibson with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mount Gibson and Super Retail.
Diversification Opportunities for Mount Gibson and Super Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mount and Super is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mount Gibson Iron and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group and Mount Gibson 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 Mount Gibson Iron are associated (or correlated) with Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of Mount Gibson i.e., Mount Gibson and Super Retail go up and down completely randomly.
Pair Corralation between Mount Gibson and Super Retail
Assuming the 90 days trading horizon Mount Gibson Iron is expected to generate 1.53 times more return on investment than Super Retail. However, Mount Gibson is 1.53 times more volatile than Super Retail Group. It trades about 0.27 of its potential returns per unit of risk. Super Retail Group is currently generating about 0.18 per unit of risk. If you would invest 30.00 in Mount Gibson Iron on November 1, 2024 and sell it today you would earn a total of 3.00 from holding Mount Gibson Iron or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mount Gibson Iron vs. Super Retail Group
Performance |
| Timeline |
| Mount Gibson Iron |
| Super Retail Group |
Mount Gibson and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mount Gibson and Super Retail
The main advantage of trading using opposite Mount Gibson and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mount Gibson position performs unexpectedly, Super Retail 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 Retail will offset losses from the drop in Super Retail's long position.| Mount Gibson vs. Saferoads Holdings | Mount Gibson vs. Spirit Telecom | Mount Gibson vs. Duxton Broadacre Farms | Mount Gibson vs. Stelar Metals |
| Super Retail vs. Djerriwarrh Investments | Super Retail vs. Technology One | Super Retail vs. Pinnacle Investment Management | Super Retail vs. Advanced Braking Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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