Correlation Between Superior Plus and PUMA SE
Can any of the company-specific risk be diversified away by investing in both Superior Plus and PUMA SE 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 PUMA SE 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 PUMA SE, you can compare the effects of market volatilities on Superior Plus and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and PUMA SE.
Diversification Opportunities for Superior Plus and PUMA SE
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and PUMA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and PUMA SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE has no effect on the direction of Superior Plus i.e., Superior Plus and PUMA SE go up and down completely randomly.
Pair Corralation between Superior Plus and PUMA SE
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the PUMA SE. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.15 times less risky than PUMA SE. The stock trades about -0.02 of its potential returns per unit of risk. The PUMA SE is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,362 in PUMA SE on September 17, 2024 and sell it today you would lose (792.00) from holding PUMA SE or give up 14.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Superior Plus Corp vs. PUMA SE
Performance |
Timeline |
Superior Plus Corp |
PUMA SE |
Superior Plus and PUMA SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Superior Plus and PUMA SE
The main advantage of trading using opposite Superior Plus and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.Superior Plus vs. TITAN MACHINERY | Superior Plus vs. Penta Ocean Construction Co | Superior Plus vs. Cogent Communications Holdings | Superior Plus vs. Highlight Communications AG |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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