Correlation Between Reinsurance Group and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group 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 Reinsurance Group and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and Superior Plus Corp, you can compare the effects of market volatilities on Reinsurance Group 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 Reinsurance Group with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and Superior Plus.
Diversification Opportunities for Reinsurance Group and Superior Plus
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Reinsurance and Superior is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of 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 Reinsurance Group 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 Reinsurance Group of 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 Reinsurance Group i.e., Reinsurance Group and Superior Plus go up and down completely randomly.
Pair Corralation between Reinsurance Group and Superior Plus
Assuming the 90 days trading horizon Reinsurance Group of is expected to generate 0.81 times more return on investment than Superior Plus. However, Reinsurance Group of is 1.23 times less risky than Superior Plus. It trades about 0.07 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.02 per unit of risk. If you would invest 13,580 in Reinsurance Group of on November 5, 2024 and sell it today you would earn a total of 8,420 from holding Reinsurance Group of or generate 62.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reinsurance Group of vs. Superior Plus Corp
Performance |
| Timeline |
| Reinsurance Group |
| Superior Plus Corp |
Reinsurance Group and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and Superior Plus
The main advantage of trading using opposite Reinsurance Group and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group 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.| Reinsurance Group vs. Richardson Electronics | Reinsurance Group vs. Samsung Electronics Co | Reinsurance Group vs. HK Electric Investments | Reinsurance Group vs. SEI INVESTMENTS |
| Superior Plus vs. Performance Food Group | Superior Plus vs. Lifeway Foods | Superior Plus vs. Cal Maine Foods | Superior Plus vs. Siamgas And Petrochemicals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |