Correlation Between Australian Unity and Super Retail
Can any of the company-specific risk be diversified away by investing in both Australian Unity and Super Retail 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 Australian Unity and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian Unity Office and Super Retail Group, you can compare the effects of market volatilities on Australian Unity and Super Retail 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 Australian Unity with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Unity and Super Retail.
Diversification Opportunities for Australian Unity and Super Retail
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Australian and Super is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Australian Unity Office and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group and Australian Unity 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 Australian Unity Office are associated (or correlated) with Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of Australian Unity i.e., Australian Unity and Super Retail go up and down completely randomly.
Pair Corralation between Australian Unity and Super Retail
Assuming the 90 days trading horizon Australian Unity Office is expected to generate 0.28 times more return on investment than Super Retail. However, Australian Unity Office is 3.58 times less risky than Super Retail. It trades about 0.1 of its potential returns per unit of risk. Super Retail Group is currently generating about -0.1 per unit of risk. If you would invest 85.00 in Australian Unity Office on December 30, 2024 and sell it today you would earn a total of 3.00 from holding Australian Unity Office or generate 3.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Australian Unity Office vs. Super Retail Group
Performance |
Timeline |
Australian Unity Office |
Super Retail Group |
Australian Unity and Super Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Australian Unity and Super Retail
The main advantage of trading using opposite Australian Unity and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian Unity position performs unexpectedly, Super Retail 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 Retail will offset losses from the drop in Super Retail's long position.Australian Unity vs. Iron Road | Australian Unity vs. Perseus Mining | Australian Unity vs. Computershare | Australian Unity vs. Aeon Metals |
Super Retail vs. Hudson Investment Group | Super Retail vs. Australian United Investment | Super Retail vs. Rural Funds Group | Super Retail vs. Insignia Financial |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |