Correlation Between Supercom and Collective Mining
Can any of the company-specific risk be diversified away by investing in both Supercom and Collective Mining 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 Collective Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and Collective Mining, you can compare the effects of market volatilities on Supercom and Collective Mining 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 Collective Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and Collective Mining.
Diversification Opportunities for Supercom and Collective Mining
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Supercom and Collective is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and Collective Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collective Mining 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 Collective Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collective Mining has no effect on the direction of Supercom i.e., Supercom and Collective Mining go up and down completely randomly.
Pair Corralation between Supercom and Collective Mining
Given the investment horizon of 90 days Supercom is expected to under-perform the Collective Mining. But the stock apears to be less risky and, when comparing its historical volatility, Supercom is 1.05 times less risky than Collective Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Collective Mining is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 649.00 in Collective Mining on January 7, 2025 and sell it today you would earn a total of 184.00 from holding Collective Mining or generate 28.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercom vs. Collective Mining
Performance |
| Timeline |
| Supercom |
| Collective Mining |
Supercom and Collective Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and Collective Mining
The main advantage of trading using opposite Supercom and Collective Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom position performs unexpectedly, Collective Mining 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 Collective Mining will offset losses from the drop in Collective Mining's long position.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
| Collective Mining vs. Figs Inc | Collective Mining vs. Molson Coors Brewing | Collective Mining vs. Boston Beer | Collective Mining vs. Jerash Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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