Correlation Between ABACUS STORAGE and Super Retail
Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE 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 ABACUS STORAGE and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABACUS STORAGE KING and Super Retail Group, you can compare the effects of market volatilities on ABACUS STORAGE 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 ABACUS STORAGE with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Super Retail.
Diversification Opportunities for ABACUS STORAGE and Super Retail
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABACUS and Super is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING 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 ABACUS STORAGE 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 ABACUS STORAGE KING 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 ABACUS STORAGE i.e., ABACUS STORAGE and Super Retail go up and down completely randomly.
Pair Corralation between ABACUS STORAGE and Super Retail
Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to generate 0.75 times more return on investment than Super Retail. However, ABACUS STORAGE KING is 1.33 times less risky than Super Retail. It trades about 0.07 of its potential returns per unit of risk. Super Retail Group is currently generating about -0.11 per unit of risk. If you would invest 115.00 in ABACUS STORAGE KING on December 28, 2024 and sell it today you would earn a total of 7.00 from holding ABACUS STORAGE KING or generate 6.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ABACUS STORAGE KING vs. Super Retail Group
Performance |
Timeline |
ABACUS STORAGE KING |
Super Retail Group |
ABACUS STORAGE and Super Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ABACUS STORAGE and Super Retail
The main advantage of trading using opposite ABACUS STORAGE and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABACUS STORAGE 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.ABACUS STORAGE vs. Aeon Metals | ABACUS STORAGE vs. Centrex Metals | ABACUS STORAGE vs. Queste Communications | ABACUS STORAGE vs. MetalsGrove Mining |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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