Correlation Between Superior Plus and KASPIKZ (SPGDR

Can any of the company-specific risk be diversified away by investing in both Superior Plus and KASPIKZ (SPGDR 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 KASPIKZ (SPGDR 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 KASPIKZ 1, you can compare the effects of market volatilities on Superior Plus and KASPIKZ (SPGDR 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 KASPIKZ (SPGDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and KASPIKZ (SPGDR.

Diversification Opportunities for Superior Plus and KASPIKZ (SPGDR

-0.25

Correlation Coefficient

Superior Plus  KASPIKZ (SPGDR

Very good diversification

The 3 months correlation between Superior and KASPIKZ is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and KASPIKZ 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KASPIKZ (SPGDR 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 KASPIKZ (SPGDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KASPIKZ (SPGDR has no effect on the direction of Superior Plus i.e., Superior Plus and KASPIKZ (SPGDR go up and down completely randomly.

Pair Corralation between Superior Plus and KASPIKZ (SPGDR

Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.9 times more return on investment than KASPIKZ (SPGDR. However, Superior Plus Corp is 1.12 times less risky than KASPIKZ (SPGDR. It trades about 0.02 of its potential returns per unit of risk. KASPIKZ 1 is currently generating about -0.03 per unit of risk. If you would invest  415.00  in Superior Plus Corp on December 23, 2024 and sell it today you would earn a total of  5.00  from holding Superior Plus Corp or generate 1.2% 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.  KASPIKZ 1

Superior Plus Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Superior Plus Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Superior Plus is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

KASPIKZ (SPGDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days KASPIKZ 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, KASPIKZ (SPGDR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Superior Plus and KASPIKZ (SPGDR

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

The idea behind Superior Plus Corp and KASPIKZ 1 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.