Correlation Between Super Retail and Pure Foods
Can any of the company-specific risk be diversified away by investing in both Super Retail and Pure Foods 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 Pure Foods 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 Pure Foods Tasmania, you can compare the effects of market volatilities on Super Retail and Pure Foods 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 Pure Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Pure Foods.
Diversification Opportunities for Super Retail and Pure Foods
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Super and Pure is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Pure Foods Tasmania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Foods Tasmania 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 Pure Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Foods Tasmania has no effect on the direction of Super Retail i.e., Super Retail and Pure Foods go up and down completely randomly.
Pair Corralation between Super Retail and Pure Foods
If you would invest 1,476 in Super Retail Group on October 14, 2024 and sell it today you would earn a total of 53.00 from holding Super Retail Group or generate 3.59% 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. Pure Foods Tasmania
Performance |
| Timeline |
| Super Retail Group |
| Pure Foods Tasmania |
Super Retail and Pure Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Pure Foods
The main advantage of trading using opposite Super Retail and Pure Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Pure Foods 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 Pure Foods will offset losses from the drop in Pure Foods' long position.| Super Retail vs. 4Dmedical | Super Retail vs. The Environmental Group | Super Retail vs. Black Rock Mining | Super Retail vs. Truscott Mining Corp |
| Pure Foods vs. Phoslock Environmental Technologies | Pure Foods vs. Ironbark Capital | Pure Foods vs. Hutchison Telecommunications | Pure Foods vs. Vulcan Steel |
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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