Correlation Between SUPER GROUP and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both SUPER GROUP and SINGAPORE POST 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 SINGAPORE POST 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 SINGAPORE POST, you can compare the effects of market volatilities on SUPER GROUP and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER GROUP and SINGAPORE POST.
Diversification Opportunities for SUPER GROUP and SINGAPORE POST
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SUPER and SINGAPORE is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SUPER GROUP LTD and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of SUPER GROUP i.e., SUPER GROUP and SINGAPORE POST go up and down completely randomly.
Pair Corralation between SUPER GROUP and SINGAPORE POST
Assuming the 90 days trading horizon SUPER GROUP LTD is expected to generate 1.18 times more return on investment than SINGAPORE POST. However, SUPER GROUP is 1.18 times more volatile than SINGAPORE POST. It trades about 0.06 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.04 per unit of risk. If you would invest 148.00 in SUPER GROUP LTD on October 26, 2024 and sell it today you would earn a total of 8.00 from holding SUPER GROUP LTD or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUPER GROUP LTD vs. SINGAPORE POST
Performance |
| Timeline |
| SUPER GROUP LTD |
| SINGAPORE POST |
SUPER GROUP and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPER GROUP and SINGAPORE POST
The main advantage of trading using opposite SUPER GROUP and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER GROUP position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.| SUPER GROUP vs. OFFICE DEPOT | SUPER GROUP vs. Fast Retailing Co | SUPER GROUP vs. TRADELINK ELECTRON | SUPER GROUP vs. GEAR4MUSIC LS 10 |
| SINGAPORE POST vs. NIKKON HOLDINGS TD | SINGAPORE POST vs. SENKO GROUP HOLDINGS | SINGAPORE POST vs. NTG Nordic Transport | SINGAPORE POST vs. SUPER GROUP LTD |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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