Correlation Between SHOPRITE HDGS and SHOPRITE HLDG

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

By analyzing existing cross correlation between SHOPRITE HDGS ADR and SHOPRITE HLDG, you can compare the effects of market volatilities on SHOPRITE HDGS and SHOPRITE HLDG 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 SHOPRITE HDGS with a short position of SHOPRITE HLDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHOPRITE HDGS and SHOPRITE HLDG.

Diversification Opportunities for SHOPRITE HDGS and SHOPRITE HLDG

0.0

Correlation Coefficient

SHOPRITE HDGS  SHOPRITE HLDG

Pay attention - limited upside

The 3 months correlation between SHOPRITE and SHOPRITE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SHOPRITE HDGS ADR and SHOPRITE HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHOPRITE HLDG and SHOPRITE HDGS 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 SHOPRITE HDGS ADR are associated (or correlated) with SHOPRITE HLDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHOPRITE HLDG has no effect on the direction of SHOPRITE HDGS i.e., SHOPRITE HDGS and SHOPRITE HLDG go up and down completely randomly.

Pair Corralation between SHOPRITE HDGS and SHOPRITE HLDG

If you would invest (100.00) in SHOPRITE HLDG on December 25, 2024 and sell it today you would earn a total of  100.00  from holding SHOPRITE HLDG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SHOPRITE HDGS ADR  vs.  SHOPRITE HLDG

SHOPRITE HDGS ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days SHOPRITE HDGS ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SHOPRITE HLDG

Risk-Adjusted Performance

Very Weak

Over the last 90 days SHOPRITE HLDG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SHOPRITE HLDG is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SHOPRITE HDGS and SHOPRITE HLDG

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

The idea behind SHOPRITE HDGS ADR and SHOPRITE HLDG 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.