Correlation Between Supermarket Income and Workspace Group
Can any of the company-specific risk be diversified away by investing in both Supermarket Income and Workspace Group 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 Workspace Group 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 Workspace Group PLC, you can compare the effects of market volatilities on Supermarket Income and Workspace Group 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 Workspace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Workspace Group.
Diversification Opportunities for Supermarket Income and Workspace Group
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Supermarket and Workspace is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT and Workspace Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workspace Group PLC 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 Workspace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workspace Group PLC has no effect on the direction of Supermarket Income i.e., Supermarket Income and Workspace Group go up and down completely randomly.
Pair Corralation between Supermarket Income and Workspace Group
Assuming the 90 days trading horizon Supermarket Income REIT is expected to under-perform the Workspace Group. But the stock apears to be less risky and, when comparing its historical volatility, Supermarket Income REIT is 1.31 times less risky than Workspace Group. The stock trades about -0.02 of its potential returns per unit of risk. The Workspace Group PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 50,960 in Workspace Group PLC on August 27, 2024 and sell it today you would earn a total of 3,540 from holding Workspace Group PLC or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supermarket Income REIT vs. Workspace Group PLC
Performance |
| Timeline |
| Supermarket Income REIT |
| Workspace Group PLC |
Supermarket Income and Workspace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Workspace Group
The main advantage of trading using opposite Supermarket Income and Workspace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income position performs unexpectedly, Workspace Group 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 Workspace Group will offset losses from the drop in Workspace Group's long position.| Supermarket Income vs. Derwent London PLC | Supermarket Income vs. Hammerson PLC | Supermarket Income vs. Workspace Group PLC | Supermarket Income vs. Diversified Energy |
| Workspace Group vs. Deltex Medical Group | Workspace Group vs. Prosiebensat 1 Media | Workspace Group vs. CompuGroup Medical AG | Workspace Group vs. United States 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |