Correlation Between Panglobal Brands and Supercom

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Can any of the company-specific risk be diversified away by investing in both Panglobal Brands and Supercom 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 Panglobal Brands and Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panglobal Brands and Supercom, you can compare the effects of market volatilities on Panglobal Brands and Supercom 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 Panglobal Brands with a short position of Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panglobal Brands and Supercom.

Diversification Opportunities for Panglobal Brands and Supercom

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Panglobal and Supercom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Panglobal Brands and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom and Panglobal Brands 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 Panglobal Brands are associated (or correlated) with Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Panglobal Brands i.e., Panglobal Brands and Supercom go up and down completely randomly.

Pair Corralation between Panglobal Brands and Supercom

If you would invest  0.01  in Panglobal Brands on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Panglobal Brands or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy10.1%
ValuesDaily Returns

Panglobal Brands  vs.  Supercom

 Performance 
       Timeline  
Panglobal Brands 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Panglobal Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Panglobal Brands is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Supercom 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Supercom are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental indicators, Supercom sustained solid returns over the last few months and may actually be approaching a breakup point.

Panglobal Brands and Supercom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Panglobal Brands and Supercom

The main advantage of trading using opposite Panglobal Brands and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panglobal Brands position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.
The idea behind Panglobal Brands and Supercom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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