Correlation Between Supermarket Income and Compal Electronics
Can any of the company-specific risk be diversified away by investing in both Supermarket Income and Compal Electronics 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 Compal Electronics 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 Compal Electronics GDR, you can compare the effects of market volatilities on Supermarket Income and Compal Electronics 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 Compal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Compal Electronics.
Diversification Opportunities for Supermarket Income and Compal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supermarket and Compal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT and Compal Electronics GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compal Electronics GDR 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 Compal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compal Electronics GDR has no effect on the direction of Supermarket Income i.e., Supermarket Income and Compal Electronics go up and down completely randomly.
Pair Corralation between Supermarket Income and Compal Electronics
If you would invest 6,910 in Supermarket Income REIT on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Supermarket Income REIT or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Supermarket Income REIT vs. Compal Electronics GDR
Performance |
| Timeline |
| Supermarket Income REIT |
| Compal Electronics GDR |
Supermarket Income and Compal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Compal Electronics
The main advantage of trading using opposite Supermarket Income and Compal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income position performs unexpectedly, Compal Electronics 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 Compal Electronics will offset losses from the drop in Compal Electronics' long position.| Supermarket Income vs. Hammerson PLC | Supermarket Income vs. Neometals | Supermarket Income vs. Coor Service Management | Supermarket Income vs. Fidelity Sustainable USD |
| Compal Electronics vs. Home Depot | Compal Electronics vs. Chrysalis Investments | Compal Electronics vs. Neometals | Compal Electronics vs. Coor Service Management |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |