Correlation Between Super Retail and Kneomedia
Can any of the company-specific risk be diversified away by investing in both Super Retail and Kneomedia 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 Kneomedia 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 Kneomedia, you can compare the effects of market volatilities on Super Retail and Kneomedia 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 Kneomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Kneomedia.
Diversification Opportunities for Super Retail and Kneomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Super and Kneomedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Kneomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kneomedia 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 Kneomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kneomedia has no effect on the direction of Super Retail i.e., Super Retail and Kneomedia go up and down completely randomly.
Pair Corralation between Super Retail and Kneomedia
Assuming the 90 days trading horizon Super Retail Group is expected to generate 0.17 times more return on investment than Kneomedia. However, Super Retail Group is 5.77 times less risky than Kneomedia. It trades about 0.06 of its potential returns per unit of risk. Kneomedia is currently generating about 0.01 per unit of risk. If you would invest 977.00 in Super Retail Group on September 3, 2024 and sell it today you would earn a total of 496.00 from holding Super Retail Group or generate 50.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Kneomedia
Performance |
| Timeline |
| Super Retail Group |
| Kneomedia |
Super Retail and Kneomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Kneomedia
The main advantage of trading using opposite Super Retail and Kneomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Kneomedia 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 Kneomedia will offset losses from the drop in Kneomedia's long position.| Super Retail vs. Westpac Banking | Super Retail vs. Champion Iron | Super Retail vs. iShares Global Healthcare | Super Retail vs. Peel Mining |
| Kneomedia vs. Encounter Resources | Kneomedia vs. Tlou Energy | Kneomedia vs. Superior Resources | Kneomedia vs. Peel Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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