Correlation Between Super Retail and Saferoads Holdings
Can any of the company-specific risk be diversified away by investing in both Super Retail and Saferoads Holdings 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 Saferoads Holdings 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 Saferoads Holdings, you can compare the effects of market volatilities on Super Retail and Saferoads Holdings 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 Saferoads Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Saferoads Holdings.
Diversification Opportunities for Super Retail and Saferoads Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Super and Saferoads is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Saferoads Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saferoads Holdings 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 Saferoads Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saferoads Holdings has no effect on the direction of Super Retail i.e., Super Retail and Saferoads Holdings go up and down completely randomly.
Pair Corralation between Super Retail and Saferoads Holdings
Assuming the 90 days trading horizon Super Retail Group is expected to generate 1.1 times more return on investment than Saferoads Holdings. However, Super Retail is 1.1 times more volatile than Saferoads Holdings. It trades about 0.07 of its potential returns per unit of risk. Saferoads Holdings is currently generating about -0.09 per unit of risk. If you would invest 1,290 in Super Retail Group on August 30, 2024 and sell it today you would earn a total of 191.00 from holding Super Retail Group or generate 14.81% 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. Saferoads Holdings
Performance |
| Timeline |
| Super Retail Group |
| Saferoads Holdings |
Super Retail and Saferoads Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Saferoads Holdings
The main advantage of trading using opposite Super Retail and Saferoads Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Saferoads Holdings 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 Saferoads Holdings will offset losses from the drop in Saferoads Holdings' 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 |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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