Correlation Between Stag Industrial and SUPERNOVA METALS

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

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

Diversification Opportunities for Stag Industrial and SUPERNOVA METALS

0.3

Correlation Coefficient

Stag Industrial  SUPERNOVA METALS

Weak diversification

The 3 months correlation between Stag and SUPERNOVA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial and SUPERNOVA METALS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPERNOVA METALS P and Stag Industrial 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 Stag Industrial are associated (or correlated) with SUPERNOVA METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPERNOVA METALS P has no effect on the direction of Stag Industrial i.e., Stag Industrial and SUPERNOVA METALS go up and down completely randomly.

Pair Corralation between Stag Industrial and SUPERNOVA METALS

Assuming the 90 days trading horizon Stag Industrial is expected to generate 0.61 times more return on investment than SUPERNOVA METALS. However, Stag Industrial is 1.65 times less risky than SUPERNOVA METALS. It trades about 0.09 of its potential returns per unit of risk. SUPERNOVA METALS P is currently generating about 0.04 per unit of risk. If you would invest  2,814  in Stag Industrial on April 20, 2025 and sell it today you would earn a total of  232.00  from holding Stag Industrial or generate 8.24% return on investment over 90 days.

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

Stag Industrial  vs.  SUPERNOVA METALS P

Stag Industrial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stag Industrial are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Stag Industrial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

SUPERNOVA METALS P

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SUPERNOVA METALS P are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SUPERNOVA METALS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Stag Industrial and SUPERNOVA METALS

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

The idea behind Stag Industrial and SUPERNOVA METALS P 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.