Correlation Between Swire Properties and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Swire Properties and Superior Plus 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 Swire Properties and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swire Properties Limited and Superior Plus Corp, you can compare the effects of market volatilities on Swire Properties and Superior Plus 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 Swire Properties with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swire Properties and Superior Plus.
Diversification Opportunities for Swire Properties and Superior Plus
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swire and Superior is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Swire Properties Limited and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Swire Properties 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 Swire Properties Limited are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Swire Properties i.e., Swire Properties and Superior Plus go up and down completely randomly.
Pair Corralation between Swire Properties and Superior Plus
Assuming the 90 days horizon Swire Properties Limited is expected to under-perform the Superior Plus. But the stock apears to be less risky and, when comparing its historical volatility, Swire Properties Limited is 1.52 times less risky than Superior Plus. The stock trades about -0.01 of its potential returns per unit of risk. The Superior Plus Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 426.00 in Superior Plus Corp on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Superior Plus Corp or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swire Properties Limited vs. Superior Plus Corp
Performance |
| Timeline |
| Swire Properties |
| Superior Plus Corp |
Swire Properties and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swire Properties and Superior Plus
The main advantage of trading using opposite Swire Properties and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swire Properties position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Swire Properties vs. Superior Plus Corp | Swire Properties vs. SIVERS SEMICONDUCTORS AB | Swire Properties vs. Reliance Steel Aluminum | Swire Properties vs. CHINA HUARONG ENERHD 50 |
| Superior Plus vs. HF SINCLAIR P | Superior Plus vs. PT Indofood Sukses | Superior Plus vs. SENECA FOODS A | Superior Plus vs. ScanSource |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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