Correlation Between Suburban Propane and Stevanato Group
Can any of the company-specific risk be diversified away by investing in both Suburban Propane and Stevanato Group 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 Stevanato Group 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 Stevanato Group SpA, you can compare the effects of market volatilities on Suburban Propane and Stevanato Group 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 Stevanato Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Stevanato Group.
Diversification Opportunities for Suburban Propane and Stevanato Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suburban and Stevanato is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA 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 Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of Suburban Propane i.e., Suburban Propane and Stevanato Group go up and down completely randomly.
Pair Corralation between Suburban Propane and Stevanato Group
Considering the 90-day investment horizon Suburban Propane is expected to generate 1.82 times less return on investment than Stevanato Group. But when comparing it to its historical volatility, Suburban Propane Partners is 1.89 times less risky than Stevanato Group. It trades about 0.02 of its potential returns per unit of risk. Stevanato Group SpA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,005 in Stevanato Group SpA on September 1, 2024 and sell it today you would lose (2.00) from holding Stevanato Group SpA or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suburban Propane Partners vs. Stevanato Group SpA
Performance |
| Timeline |
| Suburban Propane Partners |
| Stevanato Group SpA |
Suburban Propane and Stevanato Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and Stevanato Group
The main advantage of trading using opposite Suburban Propane and Stevanato Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane position performs unexpectedly, Stevanato Group 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 Stevanato Group will offset losses from the drop in Stevanato Group's long position.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. Atmos Energy | Suburban Propane vs. One Gas | Suburban Propane vs. NiSource |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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