Correlation Between SUPER GROUP and SENKO GROUP

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

By analyzing existing cross correlation between SUPER GROUP LTD and SENKO GROUP HOLDINGS, you can compare the effects of market volatilities on SUPER GROUP and SENKO GROUP 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 SUPER GROUP with a short position of SENKO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER GROUP and SENKO GROUP.

Diversification Opportunities for SUPER GROUP and SENKO GROUP

0.82

Correlation Coefficient

SUPER GROUP  SENKO GROUP

Very poor diversification

The 3 months correlation between SUPER and SENKO is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SUPER GROUP LTD and SENKO GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENKO GROUP HOLDINGS and SUPER GROUP 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 SUPER GROUP LTD are associated (or correlated) with SENKO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENKO GROUP HOLDINGS has no effect on the direction of SUPER GROUP i.e., SUPER GROUP and SENKO GROUP go up and down completely randomly.

Pair Corralation between SUPER GROUP and SENKO GROUP

Assuming the 90 days trading horizon SUPER GROUP LTD is expected to generate 4.83 times more return on investment than SENKO GROUP. However, SUPER GROUP is 4.83 times more volatile than SENKO GROUP HOLDINGS. It trades about 0.06 of its potential returns per unit of risk. SENKO GROUP HOLDINGS is currently generating about 0.05 per unit of risk. If you would invest  38.00  in SUPER GROUP LTD on September 25, 2024 and sell it today you would earn a total of  114.00  from holding SUPER GROUP LTD or generate 300.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

SUPER GROUP LTD  vs.  SENKO GROUP HOLDINGS

SUPER GROUP LTD

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SUPER GROUP LTD are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, SUPER GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

SENKO GROUP HOLDINGS

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SENKO GROUP HOLDINGS are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, SENKO GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SUPER GROUP and SENKO GROUP

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

The idea behind SUPER GROUP LTD and SENKO GROUP HOLDINGS 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.