Correlation Between SUPERNOVA METALS and CSL

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

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

Diversification Opportunities for SUPERNOVA METALS and CSL

0.0

Correlation Coefficient

SUPERNOVA METALS  CSL

Pay attention - limited upside

The 3 months correlation between SUPERNOVA and CSL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUPERNOVA METALS P and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR and SUPERNOVA METALS 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 SUPERNOVA METALS P are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of SUPERNOVA METALS i.e., SUPERNOVA METALS and CSL go up and down completely randomly.

Pair Corralation between SUPERNOVA METALS and CSL

If you would invest  28.00  in SUPERNOVA METALS P on May 28, 2025 and sell it today you would earn a total of  0.00  from holding SUPERNOVA METALS P or generate 0.0% return on investment over 90 days.

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

SUPERNOVA METALS P  vs.  CSL LTD SPONADR

SUPERNOVA METALS P

Risk-Adjusted Performance

Weakest

Over the last 90 days SUPERNOVA METALS P has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

CSL LTD SPONADR

Risk-Adjusted Performance

Weakest

Over the last 90 days CSL LTD SPONADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward-looking indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with SUPERNOVA METALS and CSL

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

The idea behind SUPERNOVA METALS P and CSL LTD SPONADR 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.