Correlation Between Supermarket Income and Aston Martin
Can any of the company-specific risk be diversified away by investing in both Supermarket Income and Aston Martin 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 Supermarket Income and Aston Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supermarket Income REIT and Aston Martin Lagonda, you can compare the effects of market volatilities on Supermarket Income and Aston Martin 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 Supermarket Income with a short position of Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Aston Martin.
Diversification Opportunities for Supermarket Income and Aston Martin
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Supermarket and Aston is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda and Supermarket Income 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 Supermarket Income REIT are associated (or correlated) with Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Supermarket Income i.e., Supermarket Income and Aston Martin go up and down completely randomly.
Pair Corralation between Supermarket Income and Aston Martin
Assuming the 90 days trading horizon Supermarket Income REIT is expected to generate 0.25 times more return on investment than Aston Martin. However, Supermarket Income REIT is 4.02 times less risky than Aston Martin. It trades about -0.03 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.11 per unit of risk. If you would invest 7,247 in Supermarket Income REIT on September 4, 2024 and sell it today you would lose (167.00) from holding Supermarket Income REIT or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supermarket Income REIT vs. Aston Martin Lagonda
Performance |
| Timeline |
| Supermarket Income REIT |
| Aston Martin Lagonda |
Supermarket Income and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Aston Martin
The main advantage of trading using opposite Supermarket Income and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.| Supermarket Income vs. Workspace Group PLC | Supermarket Income vs. Reckitt Benckiser Group | Supermarket Income vs. Polar Capital Technology | Supermarket Income vs. DXC Technology Co |
| Aston Martin vs. AfriTin Mining | Aston Martin vs. Cornish Metals | Aston Martin vs. Panther Metals PLC | Aston Martin vs. Supermarket Income REIT |
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.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |