Correlation Between Supercom and Atlantic Union
Can any of the company-specific risk be diversified away by investing in both Supercom and Atlantic Union 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 Supercom and Atlantic Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and Atlantic Union Bankshares, you can compare the effects of market volatilities on Supercom and Atlantic Union 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 Supercom with a short position of Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and Atlantic Union.
Diversification Opportunities for Supercom and Atlantic Union
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Supercom and Atlantic is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares and Supercom 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 Supercom are associated (or correlated) with Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of Supercom i.e., Supercom and Atlantic Union go up and down completely randomly.
Pair Corralation between Supercom and Atlantic Union
Given the investment horizon of 90 days Supercom is expected to under-perform the Atlantic Union. In addition to that, Supercom is 5.77 times more volatile than Atlantic Union Bankshares. It trades about 0.0 of its total potential returns per unit of risk. Atlantic Union Bankshares is currently generating about 0.09 per unit of volatility. If you would invest 1,903 in Atlantic Union Bankshares on September 3, 2024 and sell it today you would earn a total of 607.00 from holding Atlantic Union Bankshares or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercom vs. Atlantic Union Bankshares
Performance |
| Timeline |
| Supercom |
| Atlantic Union Bankshares |
Supercom and Atlantic Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and Atlantic Union
The main advantage of trading using opposite Supercom and Atlantic Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom position performs unexpectedly, Atlantic Union 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 Atlantic Union will offset losses from the drop in Atlantic Union's long position.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
| Atlantic Union vs. Plexus Corp | Atlantic Union vs. Emerson Radio | Atlantic Union vs. Jabil Circuit | Atlantic Union vs. Weibo Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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