Correlation Between INTER CARS and SUPER GROUP

Can any of the company-specific risk be diversified away by investing in both INTER CARS and SUPER 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 INTER CARS and SUPER GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INTER CARS SA and SUPER GROUP LTD, you can compare the effects of market volatilities on INTER CARS and SUPER 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 INTER CARS with a short position of SUPER GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and SUPER GROUP.

Diversification Opportunities for INTER CARS and SUPER GROUP

-0.41

Correlation Coefficient

INTER CARS  SUPER GROUP

Very good diversification

The 3 months correlation between INTER and SUPER is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and SUPER GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER GROUP LTD and INTER CARS 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 INTER CARS SA are associated (or correlated) with SUPER GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER GROUP LTD has no effect on the direction of INTER CARS i.e., INTER CARS and SUPER GROUP go up and down completely randomly.

Pair Corralation between INTER CARS and SUPER GROUP

Assuming the 90 days horizon INTER CARS SA is expected to generate 0.81 times more return on investment than SUPER GROUP. However, INTER CARS SA is 1.24 times less risky than SUPER GROUP. It trades about 0.09 of its potential returns per unit of risk. SUPER GROUP LTD is currently generating about -0.07 per unit of risk. If you would invest  11,680  in INTER CARS SA on December 21, 2024 and sell it today you would earn a total of  1,120  from holding INTER CARS SA or generate 9.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

INTER CARS SA  vs.  SUPER GROUP LTD

INTER CARS SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INTER CARS SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, INTER CARS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

SUPER GROUP LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days SUPER GROUP LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental 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 INTER CARS and SUPER GROUP

The main advantage of trading using opposite INTER CARS and SUPER GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, SUPER 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 SUPER GROUP will offset losses from the drop in SUPER GROUP's long position.

The idea behind INTER CARS SA and SUPER GROUP LTD 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.