Correlation Between Super Retail and Bank of Queensland
Can any of the company-specific risk be diversified away by investing in both Super Retail and Bank of Queensland 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 Super Retail and Bank of Queensland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Retail Group and Bank of Queensland, you can compare the effects of market volatilities on Super Retail and Bank of Queensland 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 Super Retail with a short position of Bank of Queensland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Bank of Queensland.
Diversification Opportunities for Super Retail and Bank of Queensland
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Super and Bank is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland and Super Retail 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 Super Retail Group are associated (or correlated) with Bank of Queensland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland has no effect on the direction of Super Retail i.e., Super Retail and Bank of Queensland go up and down completely randomly.
Pair Corralation between Super Retail and Bank of Queensland
Assuming the 90 days trading horizon Super Retail Group is expected to generate 4.66 times more return on investment than Bank of Queensland. However, Super Retail is 4.66 times more volatile than Bank of Queensland. It trades about 0.05 of its potential returns per unit of risk. Bank of Queensland is currently generating about 0.08 per unit of risk. If you would invest 1,002 in Super Retail Group on August 26, 2024 and sell it today you would earn a total of 448.00 from holding Super Retail Group or generate 44.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Bank of Queensland
Performance |
| Timeline |
| Super Retail Group |
| Bank of Queensland |
Super Retail and Bank of Queensland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Bank of Queensland
The main advantage of trading using opposite Super Retail and Bank of Queensland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Bank of Queensland 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 Bank of Queensland will offset losses from the drop in Bank of Queensland's long position.| Super Retail vs. REGAL ASIAN INVESTMENTS | Super Retail vs. Qbe Insurance Group | Super Retail vs. Wt Financial Group | Super Retail vs. Kkr Credit Income |
| Bank of Queensland vs. Mystate | Bank of Queensland vs. Insurance Australia Group | Bank of Queensland vs. Origin Energy | Bank of Queensland vs. Ecofibre |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |