Correlation Between Super Retail and Lykos Metals

Can any of the company-specific risk be diversified away by investing in both Super Retail and Lykos Metals 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 Lykos Metals 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 Lykos Metals, you can compare the effects of market volatilities on Super Retail and Lykos Metals 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 Lykos Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Lykos Metals.

Diversification Opportunities for Super Retail and Lykos Metals

0.08

Correlation Coefficient

Super Retail  Lykos Metals

Significant diversification

The 3 months correlation between Super and Lykos is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Lykos Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lykos Metals 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 Lykos Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykos Metals has no effect on the direction of Super Retail i.e., Super Retail and Lykos Metals go up and down completely randomly.

Pair Corralation between Super Retail and Lykos Metals

Assuming the 90 days trading horizon Super Retail Group is expected to generate 0.31 times more return on investment than Lykos Metals. However, Super Retail Group is 3.19 times less risky than Lykos Metals. It trades about 0.05 of its potential returns per unit of risk. Lykos Metals is currently generating about -0.05 per unit of risk. If you would invest  1,135  in Super Retail Group on October 25, 2024 and sell it today you would earn a total of  415.00  from holding Super Retail Group or generate 36.56% return on investment over 90 days.

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

Super Retail Group  vs.  Lykos Metals

Super Retail Group

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Super Retail Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Super Retail is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Lykos Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lykos Metals 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 forward-looking signals 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.

Pair Trading with Super Retail and Lykos Metals

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

The idea behind Super Retail Group and Lykos Metals 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.