Correlation Between Suburban Propane and Super League

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Can any of the company-specific risk be diversified away by investing in both Suburban Propane and Super League 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 Suburban Propane and Super League into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and Super League Enterprise, you can compare the effects of market volatilities on Suburban Propane and Super League 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 Suburban Propane with a short position of Super League. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Super League.

Diversification Opportunities for Suburban Propane and Super League

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between Suburban and Super is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise and Suburban Propane 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 Suburban Propane Partners are associated (or correlated) with Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of Suburban Propane i.e., Suburban Propane and Super League go up and down completely randomly.

Pair Corralation between Suburban Propane and Super League

Considering the 90-day investment horizon Suburban Propane Partners is expected to generate 0.2 times more return on investment than Super League. However, Suburban Propane Partners is 4.98 times less risky than Super League. It trades about 0.04 of its potential returns per unit of risk. Super League Enterprise is currently generating about -0.02 per unit of risk. If you would invest  1,370  in Suburban Propane Partners on October 14, 2024 and sell it today you would earn a total of  441.00  from holding Suburban Propane Partners or generate 32.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Suburban Propane Partners  vs.  Super League Enterprise

 Performance 
       Timeline  
Suburban Propane Partners 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Suburban Propane Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Suburban Propane is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
Super League Enterprise 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Super League Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Suburban Propane and Super League Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Suburban Propane and Super League

The main advantage of trading using opposite Suburban Propane and Super League positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane position performs unexpectedly, Super League 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 Super League will offset losses from the drop in Super League's long position.
The idea behind Suburban Propane Partners and Super League Enterprise pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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