Correlation Between SUPER GROUP and NIKKON HOLDINGS
Can any of the company-specific risk be diversified away by investing in both SUPER GROUP and NIKKON HOLDINGS 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 SUPER GROUP and NIKKON HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPER GROUP LTD and NIKKON HOLDINGS TD, you can compare the effects of market volatilities on SUPER GROUP and NIKKON HOLDINGS 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 SUPER GROUP with a short position of NIKKON HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER GROUP and NIKKON HOLDINGS.
Diversification Opportunities for SUPER GROUP and NIKKON HOLDINGS
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUPER and NIKKON is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SUPER GROUP LTD and NIKKON HOLDINGS TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIKKON HOLDINGS TD and SUPER 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 SUPER GROUP LTD are associated (or correlated) with NIKKON HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKON HOLDINGS TD has no effect on the direction of SUPER GROUP i.e., SUPER GROUP and NIKKON HOLDINGS go up and down completely randomly.
Pair Corralation between SUPER GROUP and NIKKON HOLDINGS
Assuming the 90 days trading horizon SUPER GROUP is expected to generate 13.35 times less return on investment than NIKKON HOLDINGS. In addition to that, SUPER GROUP is 1.19 times more volatile than NIKKON HOLDINGS TD. It trades about 0.02 of its total potential returns per unit of risk. NIKKON HOLDINGS TD is currently generating about 0.4 per unit of volatility. If you would invest 1,220 in NIKKON HOLDINGS TD on November 5, 2024 and sell it today you would earn a total of 190.00 from holding NIKKON HOLDINGS TD or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SUPER GROUP LTD vs. NIKKON HOLDINGS TD
Performance |
| Timeline |
| SUPER GROUP LTD |
| NIKKON HOLDINGS TD |
SUPER GROUP and NIKKON HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPER GROUP and NIKKON HOLDINGS
The main advantage of trading using opposite SUPER GROUP and NIKKON HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER GROUP position performs unexpectedly, NIKKON HOLDINGS 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 NIKKON HOLDINGS will offset losses from the drop in NIKKON HOLDINGS's long position.| SUPER GROUP vs. Hemisphere Energy Corp | SUPER GROUP vs. ScanSource | SUPER GROUP vs. ANGANG STEEL H | SUPER GROUP vs. MOUNT GIBSON IRON |
| NIKKON HOLDINGS vs. American Homes 4 | NIKKON HOLDINGS vs. KENEDIX OFFICE INV | NIKKON HOLDINGS vs. Endeavour Mining PLC | NIKKON HOLDINGS vs. Haverty Furniture Companies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |