Correlation Between Super Retail and Djerriwarrh Investments
Can any of the company-specific risk be diversified away by investing in both Super Retail and Djerriwarrh Investments 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 Djerriwarrh Investments 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 Djerriwarrh Investments, you can compare the effects of market volatilities on Super Retail and Djerriwarrh Investments 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 Djerriwarrh Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Djerriwarrh Investments.
Diversification Opportunities for Super Retail and Djerriwarrh Investments
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Djerriwarrh is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Djerriwarrh Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djerriwarrh Investments 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 Djerriwarrh Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djerriwarrh Investments has no effect on the direction of Super Retail i.e., Super Retail and Djerriwarrh Investments go up and down completely randomly.
Pair Corralation between Super Retail and Djerriwarrh Investments
Assuming the 90 days trading horizon Super Retail Group is expected to generate 1.95 times more return on investment than Djerriwarrh Investments. However, Super Retail is 1.95 times more volatile than Djerriwarrh Investments. It trades about 0.11 of its potential returns per unit of risk. Djerriwarrh Investments is currently generating about -0.03 per unit of risk. If you would invest 1,478 in Super Retail Group on November 3, 2024 and sell it today you would earn a total of 90.00 from holding Super Retail Group or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Djerriwarrh Investments
Performance |
| Timeline |
| Super Retail Group |
| Djerriwarrh Investments |
Super Retail and Djerriwarrh Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Djerriwarrh Investments
The main advantage of trading using opposite Super Retail and Djerriwarrh Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Djerriwarrh Investments 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 Djerriwarrh Investments will offset losses from the drop in Djerriwarrh Investments' long position.| Super Retail vs. Dicker Data | Super Retail vs. Beam Communications Holdings | Super Retail vs. Chalice Mining Limited | Super Retail vs. Globe Metals Mining |
| Djerriwarrh Investments vs. COG Financial Services | Djerriwarrh Investments vs. Queste Communications | Djerriwarrh Investments vs. Insignia Financial | Djerriwarrh Investments vs. Medibank Private |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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