Correlation Between Dash and SUPERC

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

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

Diversification Opportunities for Dash and SUPERC

-0.41

Correlation Coefficient

Dash  SUPERC

Very good diversification

The 3 months correlation between Dash and SUPERC is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dash and SUPERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPERC and Dash 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 Dash are associated (or correlated) with SUPERC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPERC has no effect on the direction of Dash i.e., Dash and SUPERC go up and down completely randomly.

Pair Corralation between Dash and SUPERC

If you would invest  2,423  in Dash on September 2, 2024 and sell it today you would earn a total of  1,527  from holding Dash or generate 63.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.52%
Values	Daily Returns

Dash  vs.  SUPERC

Dash

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dash are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Dash exhibited solid returns over the last few months and may actually be approaching a breakup point.

SUPERC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUPERC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SUPERC is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dash and SUPERC

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

The idea behind Dash and SUPERC 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.