Correlation Between Superior Plus and ASSGENERALI ADR

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

By analyzing existing cross correlation between Superior Plus Corp and ASSGENERALI ADR 12EO, you can compare the effects of market volatilities on Superior Plus and ASSGENERALI ADR 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 Superior Plus with a short position of ASSGENERALI ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and ASSGENERALI ADR.

Diversification Opportunities for Superior Plus and ASSGENERALI ADR

-0.16

Correlation Coefficient

Superior Plus  ASSGENERALI ADR

Good diversification

The 3 months correlation between Superior and ASSGENERALI is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and ASSGENERALI ADR 12EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSGENERALI ADR 12EO and Superior Plus 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 Superior Plus Corp are associated (or correlated) with ASSGENERALI ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSGENERALI ADR 12EO has no effect on the direction of Superior Plus i.e., Superior Plus and ASSGENERALI ADR go up and down completely randomly.

Pair Corralation between Superior Plus and ASSGENERALI ADR

Assuming the 90 days horizon Superior Plus is expected to generate 10.86 times less return on investment than ASSGENERALI ADR. In addition to that, Superior Plus is 1.63 times more volatile than ASSGENERALI ADR 12EO. It trades about 0.01 of its total potential returns per unit of risk. ASSGENERALI ADR 12EO is currently generating about 0.21 per unit of volatility. If you would invest  1,380  in ASSGENERALI ADR 12EO on December 26, 2024 and sell it today you would earn a total of  230.00  from holding ASSGENERALI ADR 12EO or generate 16.67% return on investment over 90 days.

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

Superior Plus Corp  vs.  ASSGENERALI ADR 12EO

Superior Plus Corp

Risk-Adjusted Performance

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 nearly stable basic indicators, Superior Plus is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ASSGENERALI ADR 12EO

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ASSGENERALI ADR 12EO are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, ASSGENERALI ADR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Superior Plus and ASSGENERALI ADR

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

The idea behind Superior Plus Corp and ASSGENERALI ADR 12EO 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.