Correlation Between Superior Uniform and Babcock Wilcox
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and Babcock Wilcox 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 Superior Uniform and Babcock Wilcox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Babcock Wilcox Enterprises, you can compare the effects of market volatilities on Superior Uniform and Babcock Wilcox 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 Superior Uniform with a short position of Babcock Wilcox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Babcock Wilcox.
Diversification Opportunities for Superior Uniform and Babcock Wilcox
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Babcock is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Babcock Wilcox Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Babcock Wilcox Enter and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with Babcock Wilcox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Babcock Wilcox Enter has no effect on the direction of Superior Uniform i.e., Superior Uniform and Babcock Wilcox go up and down completely randomly.
Pair Corralation between Superior Uniform and Babcock Wilcox
Considering the 90-day investment horizon Superior Uniform Group is expected to generate 1.0 times more return on investment than Babcock Wilcox. However, Superior Uniform is 1.0 times more volatile than Babcock Wilcox Enterprises. It trades about 0.06 of its potential returns per unit of risk. Babcock Wilcox Enterprises is currently generating about 0.02 per unit of risk. If you would invest 1,649 in Superior Uniform Group on January 26, 2024 and sell it today you would earn a total of 35.00 from holding Superior Uniform Group or generate 2.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Superior Uniform Group vs. Babcock Wilcox Enterprises
Performance |
Timeline |
Superior Uniform |
Babcock Wilcox Enter |
Superior Uniform and Babcock Wilcox Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Superior Uniform and Babcock Wilcox
The main advantage of trading using opposite Superior Uniform and Babcock Wilcox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, Babcock Wilcox 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 Babcock Wilcox will offset losses from the drop in Babcock Wilcox's long position.Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
Babcock Wilcox vs. Harrow Health 8625 | Babcock Wilcox vs. B Riley Financial | Babcock Wilcox vs. B Riley Financial | Babcock Wilcox vs. Eagle Point Credit |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Stocks Directory Find actively traded stocks across global markets |