Correlation Between Super Retail and Janison Education

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

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

Diversification Opportunities for Super Retail and Janison Education

-0.13

Correlation Coefficient

Super Retail  Janison Education

Good diversification

The 3 months correlation between Super and Janison is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Janison Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janison Education and Super Retail 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 Retail Group are associated (or correlated) with Janison Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janison Education has no effect on the direction of Super Retail i.e., Super Retail and Janison Education go up and down completely randomly.

Pair Corralation between Super Retail and Janison Education

Assuming the 90 days trading horizon Super Retail Group is expected to generate 0.37 times more return on investment than Janison Education. However, Super Retail Group is 2.71 times less risky than Janison Education. It trades about 0.05 of its potential returns per unit of risk. Janison Education Group is currently generating about -0.03 per unit of risk. If you would invest  1,036  in Super Retail Group on October 3, 2024 and sell it today you would earn a total of  482.00  from holding Super Retail Group or generate 46.53% return on investment over 90 days.

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

Super Retail Group  vs.  Janison Education Group

Super Retail Group

Risk-Adjusted Performance

0 of 100

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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Janison Education

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Super Retail and Janison Education

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

The idea behind Super Retail Group and Janison Education 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.