Correlation Between Superior Uniform and H M
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and H M 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 Superior Uniform and H M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and H M Hennes, you can compare the effects of market volatilities on Superior Uniform and H M 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 Superior Uniform with a short position of H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and H M.
Diversification Opportunities for Superior Uniform and H M
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and HNNMY is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Superior Uniform i.e., Superior Uniform and H M go up and down completely randomly.
Pair Corralation between Superior Uniform and H M
Considering the 90-day investment horizon Superior Uniform Group is expected to under-perform the H M. In addition to that, Superior Uniform is 1.01 times more volatile than H M Hennes. It trades about -0.16 of its total potential returns per unit of risk. H M Hennes is currently generating about 0.13 per unit of volatility. If you would invest 266.00 in H M Hennes on November 18, 2024 and sell it today you would earn a total of 12.00 from holding H M Hennes or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Uniform Group vs. H M Hennes
Performance |
| Timeline |
| Superior Uniform |
| H M Hennes |
Superior Uniform and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and H M
The main advantage of trading using opposite Superior Uniform and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. Gildan Activewear |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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