Correlation Between SIRIUS XM and Superior Plus
Can any of the company-specific risk be diversified away by investing in both SIRIUS XM 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 SIRIUS XM and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIRIUS XM RADIO and Superior Plus Corp, you can compare the effects of market volatilities on SIRIUS XM 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 SIRIUS XM with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIRIUS XM and Superior Plus.
Diversification Opportunities for SIRIUS XM and Superior Plus
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SIRIUS and Superior is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SIRIUS XM RADIO 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 SIRIUS XM 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 SIRIUS XM RADIO 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 SIRIUS XM i.e., SIRIUS XM and Superior Plus go up and down completely randomly.
Pair Corralation between SIRIUS XM and Superior Plus
Assuming the 90 days trading horizon SIRIUS XM RADIO is expected to generate 1.4 times more return on investment than Superior Plus. However, SIRIUS XM is 1.4 times more volatile than Superior Plus Corp. It trades about 0.62 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.16 per unit of risk. If you would invest 2,043 in SIRIUS XM RADIO on November 27, 2024 and sell it today you would earn a total of 413.00 from holding SIRIUS XM RADIO or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
SIRIUS XM RADIO vs. Superior Plus Corp
Performance |
| Timeline |
| SIRIUS XM RADIO |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Superior Plus Corp |
SIRIUS XM and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIRIUS XM and Superior Plus
The main advantage of trading using opposite SIRIUS XM and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIRIUS XM 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.| SIRIUS XM vs. Alfa Financial Software | SIRIUS XM vs. CEOTRONICS | SIRIUS XM vs. Magic Software Enterprises | SIRIUS XM vs. CeoTronics AG |
| Superior Plus vs. SANOK RUBBER ZY | Superior Plus vs. APPLIED MATERIALS | Superior Plus vs. WILLIS LEASE FIN | Superior Plus vs. FUYO GENERAL LEASE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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