Correlation Between Wabash National and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Wabash National 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 Wabash National and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and Superior Plus Corp, you can compare the effects of market volatilities on Wabash National 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 Wabash National with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and Superior Plus.
Diversification Opportunities for Wabash National and Superior Plus
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wabash and Superior is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National 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 Wabash National 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 Wabash National 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 Wabash National i.e., Wabash National and Superior Plus go up and down completely randomly.
Pair Corralation between Wabash National and Superior Plus
Assuming the 90 days horizon Wabash National is expected to generate 1.12 times more return on investment than Superior Plus. However, Wabash National is 1.12 times more volatile than Superior Plus Corp. It trades about 0.0 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.02 per unit of risk. If you would invest 2,212 in Wabash National on September 3, 2024 and sell it today you would lose (382.00) from holding Wabash National or give up 17.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wabash National vs. Superior Plus Corp
Performance |
| Timeline |
| Wabash National |
| Superior Plus Corp |
Wabash National and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and Superior Plus
The main advantage of trading using opposite Wabash National and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National 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.| Wabash National vs. PENN NATL GAMING | Wabash National vs. National Health Investors | Wabash National vs. GameStop Corp | Wabash National vs. Penn National Gaming |
| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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