Correlation Between Super Micro and PowerFleet,

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

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

Diversification Opportunities for Super Micro and PowerFleet,

-0.32

Correlation Coefficient

Super Micro  PowerFleet,

Very good diversification

The 3 months correlation between Super and PowerFleet, is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Super Micro 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 Micro Computer are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Super Micro i.e., Super Micro and PowerFleet, go up and down completely randomly.

Pair Corralation between Super Micro and PowerFleet,

Given the investment horizon of 90 days Super Micro is expected to generate 3.03 times less return on investment than PowerFleet,. In addition to that, Super Micro is 2.15 times more volatile than PowerFleet,. It trades about 0.02 of its total potential returns per unit of risk. PowerFleet, is currently generating about 0.16 per unit of volatility. If you would invest  463.00  in PowerFleet, on September 12, 2024 and sell it today you would earn a total of  223.00  from holding PowerFleet, or generate 48.16% return on investment over 90 days.

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

Super Micro Computer  vs.  PowerFleet,

Super Micro Computer

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Super Micro Computer are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Super Micro demonstrated solid returns over the last few months and may actually be approaching a breakup point.

PowerFleet,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Super Micro and PowerFleet,

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

The idea behind Super Micro Computer and PowerFleet, 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.