Correlation Between Super League and IAC

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

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

Diversification Opportunities for Super League and IAC

0.23

Correlation Coefficient

Super League  IAC

Modest diversification

The 3 months correlation between Super and IAC is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Super League Enterprise and IAC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAC Inc and Super League 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 League Enterprise are associated (or correlated) with IAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAC Inc has no effect on the direction of Super League i.e., Super League and IAC go up and down completely randomly.

Pair Corralation between Super League and IAC

Considering the 90-day investment horizon Super League Enterprise is expected to under-perform the IAC. In addition to that, Super League is 3.75 times more volatile than IAC Inc. It trades about -0.12 of its total potential returns per unit of risk. IAC Inc is currently generating about 0.0 per unit of volatility. If you would invest  3,651  in IAC Inc on May 28, 2025 and sell it today you would lose (81.00) from holding IAC Inc or give up 2.22% of portfolio value over 90 days.

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

Super League Enterprise  vs.  IAC Inc

Super League Enterprise

Risk-Adjusted Performance

Weakest

Over the last 90 days Super League Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

IAC Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days IAC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, IAC is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Super League and IAC

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

The idea behind Super League Enterprise and IAC Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.