Correlation Between Supercom and Global Digital
Can any of the company-specific risk be diversified away by investing in both Supercom and Global Digital 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 Global Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and Global Digital Soltn, you can compare the effects of market volatilities on Supercom and Global Digital 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 Global Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and Global Digital.
Diversification Opportunities for Supercom and Global Digital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Supercom and Global is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and Global Digital Soltn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Digital Soltn 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 Global Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Digital Soltn has no effect on the direction of Supercom i.e., Supercom and Global Digital go up and down completely randomly.
Pair Corralation between Supercom and Global Digital
If you would invest 341.00 in Supercom on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Supercom or generate 2.05% 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. Global Digital Soltn
Performance |
| Timeline |
| Supercom |
| Global Digital Soltn |
Supercom and Global Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and Global Digital
The main advantage of trading using opposite Supercom and Global Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom position performs unexpectedly, Global Digital 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 Global Digital will offset losses from the drop in Global Digital's long position.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
| Global Digital vs. Seychelle Environmtl | Global Digital vs. Energy and Water | Global Digital vs. One World Universe | Global Digital vs. Vow ASA |
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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