Correlation Between Super Retail and Imugene
Can any of the company-specific risk be diversified away by investing in both Super Retail and Imugene 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 Imugene 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 Imugene, you can compare the effects of market volatilities on Super Retail and Imugene 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 Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Imugene.
Diversification Opportunities for Super Retail and Imugene
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Imugene is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene 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 Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of Super Retail i.e., Super Retail and Imugene go up and down completely randomly.
Pair Corralation between Super Retail and Imugene
Assuming the 90 days trading horizon Super Retail Group is expected to generate 0.38 times more return on investment than Imugene. However, Super Retail Group is 2.63 times less risky than Imugene. It trades about -0.12 of its potential returns per unit of risk. Imugene is currently generating about -0.22 per unit of risk. If you would invest 1,518 in Super Retail Group on August 26, 2024 and sell it today you would lose (68.00) from holding Super Retail Group or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Imugene
Performance |
| Timeline |
| Super Retail Group |
| Imugene |
Super Retail and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Imugene
The main advantage of trading using opposite Super Retail and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Imugene 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 Imugene will offset losses from the drop in Imugene'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 |
| Imugene vs. Super Retail Group | Imugene vs. Sky Metals | Imugene vs. Charter Hall Retail | Imugene vs. Aurelia Metals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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