Correlation Between Nufarm and Super Retail
Can any of the company-specific risk be diversified away by investing in both Nufarm 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 Nufarm and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nufarm and Super Retail Group, you can compare the effects of market volatilities on Nufarm 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 Nufarm with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nufarm and Super Retail.
Diversification Opportunities for Nufarm and Super Retail
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nufarm and Super is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nufarm 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 Nufarm 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 Nufarm 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 Nufarm i.e., Nufarm and Super Retail go up and down completely randomly.
Pair Corralation between Nufarm and Super Retail
Assuming the 90 days trading horizon Nufarm is expected to under-perform the Super Retail. But the stock apears to be less risky and, when comparing its historical volatility, Nufarm is 1.1 times less risky than Super Retail. The stock trades about -0.11 of its potential returns per unit of risk. The Super Retail Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,484 in Super Retail Group on October 12, 2024 and sell it today you would earn a total of 44.00 from holding Super Retail Group or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nufarm vs. Super Retail Group
Performance |
| Timeline |
| Nufarm |
| Super Retail Group |
Nufarm and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nufarm and Super Retail
The main advantage of trading using opposite Nufarm and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nufarm 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.| Nufarm vs. Stelar Metals | Nufarm vs. Centrex Metals | Nufarm vs. Metro Mining | Nufarm vs. Truscott Mining Corp |
| Super Retail vs. Hotel Property Investments | Super Retail vs. Dynamic Drill And | Super Retail vs. Gtn | Super Retail vs. Nufarm |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |