Correlation Between SupplyMe Capital and 3I Group
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital and 3I 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 SupplyMe Capital and 3I Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and 3I Group PLC, you can compare the effects of market volatilities on SupplyMe Capital and 3I 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 SupplyMe Capital with a short position of 3I Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and 3I Group.
Diversification Opportunities for SupplyMe Capital and 3I Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SupplyMe and III is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and 3I Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3I Group PLC and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with 3I Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3I Group PLC has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and 3I Group go up and down completely randomly.
Pair Corralation between SupplyMe Capital and 3I Group
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to generate 13.89 times more return on investment than 3I Group. However, SupplyMe Capital is 13.89 times more volatile than 3I Group PLC. It trades about 0.02 of its potential returns per unit of risk. 3I Group PLC is currently generating about -0.05 per unit of risk. If you would invest 0.40 in SupplyMe Capital PLC on October 12, 2024 and sell it today you would lose (0.05) from holding SupplyMe Capital PLC or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. 3I Group PLC
Performance |
| Timeline |
| SupplyMe Capital PLC |
| 3I Group PLC |
SupplyMe Capital and 3I Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and 3I Group
The main advantage of trading using opposite SupplyMe Capital and 3I Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital position performs unexpectedly, 3I 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 3I Group will offset losses from the drop in 3I Group's long position.| SupplyMe Capital vs. Pentair PLC | SupplyMe Capital vs. Air Products Chemicals | SupplyMe Capital vs. Fair Oaks Income | SupplyMe Capital vs. Gamma Communications PLC |
| 3I Group vs. Flow Traders NV | 3I Group vs. Grand Vision Media | 3I Group vs. One Media iP | 3I Group vs. Sabre Insurance Group |
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.
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