Correlation Between Super Retail and Shopping Centres

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

Diversification Opportunities for Super Retail and Shopping Centres

0.0

Correlation Coefficient

Super Retail  Shopping Centres

Pay attention - limited upside

The 3 months correlation between Super and Shopping is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Shopping Centres Australasia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shopping Centres Aus 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 Shopping Centres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shopping Centres Aus has no effect on the direction of Super Retail i.e., Super Retail and Shopping Centres go up and down completely randomly.

Pair Corralation between Super Retail and Shopping Centres

If you would invest  1,454  in Super Retail Group on November 20, 2024 and sell it today you would earn a total of  199.00  from holding Super Retail Group or generate 13.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Super Retail Group  vs.  Shopping Centres Australasia

Super Retail Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Super Retail Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Super Retail unveiled solid returns over the last few months and may actually be approaching a breakup point.

Shopping Centres Aus

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Super Retail and Shopping Centres

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

The idea behind Super Retail Group and Shopping Centres Australasia 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.