Correlation Between Super Retail and British Amer
Can any of the company-specific risk be diversified away by investing in both Super Retail and British Amer 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 British Amer 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 Bailador Technology Invest, you can compare the effects of market volatilities on Super Retail and British Amer 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 British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and British Amer.
Diversification Opportunities for Super Retail and British Amer
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Super and British is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology 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 British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Super Retail i.e., Super Retail and British Amer go up and down completely randomly.
Pair Corralation between Super Retail and British Amer
Assuming the 90 days trading horizon Super Retail Group is expected to generate 1.71 times more return on investment than British Amer. However, Super Retail is 1.71 times more volatile than Bailador Technology Invest. It trades about 0.08 of its potential returns per unit of risk. Bailador Technology Invest is currently generating about 0.05 per unit of risk. If you would invest 1,444 in Super Retail Group on August 31, 2024 and sell it today you would earn a total of 37.00 from holding Super Retail Group or generate 2.56% 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. Bailador Technology Invest
Performance |
| Timeline |
| Super Retail Group |
| Bailador Technology |
Super Retail and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and British Amer
The main advantage of trading using opposite Super Retail and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Super Retail vs. Aneka Tambang Tbk | Super Retail vs. Unibail Rodamco Westfield SE | Super Retail vs. Macquarie Group | Super Retail vs. Commonwealth Bank |
| British Amer vs. Energy Resources | British Amer vs. 88 Energy | British Amer vs. Amani Gold | British Amer vs. A1 Investments Resources |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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