Correlation Between Super Retail and Olivers Real
Can any of the company-specific risk be diversified away by investing in both Super Retail and Olivers Real 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 Olivers Real 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 Olivers Real Food, you can compare the effects of market volatilities on Super Retail and Olivers Real 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 Olivers Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Olivers Real.
Diversification Opportunities for Super Retail and Olivers Real
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Super and Olivers is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Olivers Real Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olivers Real Food 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 Olivers Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olivers Real Food has no effect on the direction of Super Retail i.e., Super Retail and Olivers Real go up and down completely randomly.
Pair Corralation between Super Retail and Olivers Real
Assuming the 90 days trading horizon Super Retail Group is expected to generate 0.24 times more return on investment than Olivers Real. However, Super Retail Group is 4.11 times less risky than Olivers Real. It trades about 0.08 of its potential returns per unit of risk. Olivers Real Food is currently generating about -0.18 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Olivers Real Food
Performance |
| Timeline |
| Super Retail Group |
| Olivers Real Food |
Super Retail and Olivers Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Olivers Real
The main advantage of trading using opposite Super Retail and Olivers Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Olivers Real 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 Olivers Real will offset losses from the drop in Olivers Real'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 |
| Olivers Real vs. Aneka Tambang Tbk | Olivers Real vs. Unibail Rodamco Westfield SE | Olivers Real vs. Macquarie Group | Olivers Real vs. Commonwealth Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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