Correlation Between Supercom and STATE
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By analyzing existing cross correlation between Supercom and STATE STREET P, you can compare the effects of market volatilities on Supercom and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and STATE.
Diversification Opportunities for Supercom and STATE
Average diversification
The 3 months correlation between Supercom and STATE is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Supercom i.e., Supercom and STATE go up and down completely randomly.
Pair Corralation between Supercom and STATE
Given the investment horizon of 90 days Supercom is expected to under-perform the STATE. In addition to that, Supercom is 2.66 times more volatile than STATE STREET P. It trades about -0.14 of its total potential returns per unit of risk. STATE STREET P is currently generating about -0.1 per unit of volatility. If you would invest 8,537 in STATE STREET P on September 13, 2024 and sell it today you would lose (252.00) from holding STATE STREET P or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Supercom vs. STATE STREET P
Performance |
| Timeline |
| Supercom |
| STATE STREET P |
Supercom and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and STATE
The main advantage of trading using opposite Supercom and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE's long position.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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