Correlation Between CITIUS PHARMAC and Superior Plus

Can any of the company-specific risk be diversified away by investing in both CITIUS PHARMAC 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 CITIUS PHARMAC and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CITIUS PHARMAC DL and Superior Plus Corp, you can compare the effects of market volatilities on CITIUS PHARMAC 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 CITIUS PHARMAC with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIUS PHARMAC and Superior Plus.

Diversification Opportunities for CITIUS PHARMAC and Superior Plus

0.55

Correlation Coefficient

CITIUS PHARMAC  Superior Plus

Very weak diversification

The 3 months correlation between CITIUS and Superior is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CITIUS PHARMAC DL 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 CITIUS PHARMAC 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 CITIUS PHARMAC DL 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 CITIUS PHARMAC i.e., CITIUS PHARMAC and Superior Plus go up and down completely randomly.

Pair Corralation between CITIUS PHARMAC and Superior Plus

Assuming the 90 days horizon CITIUS PHARMAC DL is expected to under-perform the Superior Plus. In addition to that, CITIUS PHARMAC is 2.93 times more volatile than Superior Plus Corp. It trades about -0.23 of its total potential returns per unit of risk. Superior Plus Corp is currently generating about 0.14 per unit of volatility. If you would invest  362.00  in Superior Plus Corp on October 9, 2024 and sell it today you would earn a total of  54.00  from holding Superior Plus Corp or generate 14.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.3%
Values	Daily Returns

CITIUS PHARMAC DL  vs.  Superior Plus Corp

CITIUS PHARMAC DL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CITIUS PHARMAC DL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Superior Plus Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Superior Plus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CITIUS PHARMAC and Superior Plus

The main advantage of trading using opposite CITIUS PHARMAC and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIUS PHARMAC 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.

The idea behind CITIUS PHARMAC DL and Superior Plus Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.