Correlation Between OFFICE DEPOT and SUPER GROUP
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and SUPER GROUP 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 OFFICE DEPOT and SUPER GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and SUPER GROUP LTD, you can compare the effects of market volatilities on OFFICE DEPOT and SUPER GROUP 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 OFFICE DEPOT with a short position of SUPER GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and SUPER GROUP.
Diversification Opportunities for OFFICE DEPOT and SUPER GROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and SUPER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and SUPER GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER GROUP LTD and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with SUPER GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER GROUP LTD has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and SUPER GROUP go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and SUPER GROUP
If you would invest 149.00 in SUPER GROUP LTD on November 5, 2024 and sell it today you would earn a total of 1.00 from holding SUPER GROUP LTD or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
OFFICE DEPOT vs. SUPER GROUP LTD
Performance |
| Timeline |
| OFFICE DEPOT |
| SUPER GROUP LTD |
OFFICE DEPOT and SUPER GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and SUPER GROUP
The main advantage of trading using opposite OFFICE DEPOT and SUPER GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, SUPER GROUP 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 GROUP will offset losses from the drop in SUPER GROUP's long position.| OFFICE DEPOT vs. FORMPIPE SOFTWARE AB | OFFICE DEPOT vs. Broadridge Financial Solutions | OFFICE DEPOT vs. Magic Software Enterprises | OFFICE DEPOT vs. VITEC SOFTWARE GROUP |
| SUPER GROUP vs. Hemisphere Energy Corp | SUPER GROUP vs. ScanSource | SUPER GROUP vs. ANGANG STEEL H | SUPER GROUP vs. MOUNT GIBSON IRON |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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