Correlation Between United States and Shoprite Holdings
Can any of the company-specific risk be diversified away by investing in both United States and Shoprite Holdings 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 United States and Shoprite Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Antimony and Shoprite Holdings Limited, you can compare the effects of market volatilities on United States and Shoprite Holdings 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 United States with a short position of Shoprite Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Shoprite Holdings.
Diversification Opportunities for United States and Shoprite Holdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Shoprite is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding United States Antimony and Shoprite Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoprite Holdings and United States 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 United States Antimony are associated (or correlated) with Shoprite Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoprite Holdings has no effect on the direction of United States i.e., United States and Shoprite Holdings go up and down completely randomly.
Pair Corralation between United States and Shoprite Holdings
If you would invest 64.00 in United States Antimony on August 30, 2024 and sell it today you would earn a total of 15.00 from holding United States Antimony or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
United States Antimony vs. Shoprite Holdings Limited
Performance |
| Timeline |
| United States Antimony |
| Shoprite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
United States and Shoprite Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Shoprite Holdings
The main advantage of trading using opposite United States and Shoprite Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Shoprite Holdings 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 Shoprite Holdings will offset losses from the drop in Shoprite Holdings' long position.| United States vs. Syrah Resources Limited | United States vs. Nouveau Monde Graphite | United States vs. Trilogy Metals | United States vs. Global Atomic Corp |
| Shoprite Holdings vs. Boston Omaha Corp | Shoprite Holdings vs. Organic Sales and | Shoprite Holdings vs. Entravision Communications | Shoprite Holdings vs. Marchex |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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