Correlation Between Stellar Capital and Super Retail

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

By analyzing existing cross correlation between Stellar Capital Partners and Super Retail Group, you can compare the effects of market volatilities on Stellar Capital 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 Stellar Capital with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar Capital and Super Retail.

Diversification Opportunities for Stellar Capital and Super Retail

0.0

Correlation Coefficient

Stellar Capital  Super Retail

Pay attention - limited upside

The 3 months correlation between Stellar and Super is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stellar Capital Partners 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 Stellar Capital 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 Stellar Capital Partners 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 Stellar Capital i.e., Stellar Capital and Super Retail go up and down completely randomly.

Pair Corralation between Stellar Capital and Super Retail

If you would invest (100.00) in Stellar Capital Partners on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Stellar Capital Partners 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

Stellar Capital Partners  vs.  Super Retail Group

Stellar Capital Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stellar Capital Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Stellar Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Super Retail Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Super Retail Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Stellar Capital and Super Retail

The main advantage of trading using opposite Stellar Capital and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar Capital 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.

The idea behind Stellar Capital Partners and Super Retail Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.