Correlation Between Leroy Seafood and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Leroy Seafood and Sligro Food 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 Leroy Seafood and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leroy Seafood Group and Sligro Food Group, you can compare the effects of market volatilities on Leroy Seafood and Sligro Food 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 Leroy Seafood with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leroy Seafood and Sligro Food.
Diversification Opportunities for Leroy Seafood and Sligro Food
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leroy and Sligro is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Leroy Seafood Group and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group and Leroy Seafood 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 Leroy Seafood Group are associated (or correlated) with Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Leroy Seafood i.e., Leroy Seafood and Sligro Food go up and down completely randomly.
Pair Corralation between Leroy Seafood and Sligro Food
Assuming the 90 days trading horizon Leroy Seafood Group is expected to generate 1.08 times more return on investment than Sligro Food. However, Leroy Seafood is 1.08 times more volatile than Sligro Food Group. It trades about 0.07 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.1 per unit of risk. If you would invest 4,434 in Leroy Seafood Group on September 3, 2024 and sell it today you would earn a total of 744.00 from holding Leroy Seafood Group or generate 16.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leroy Seafood Group vs. Sligro Food Group
Performance |
| Timeline |
| Leroy Seafood Group |
| Sligro Food Group |
Leroy Seafood and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leroy Seafood and Sligro Food
The main advantage of trading using opposite Leroy Seafood and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leroy Seafood position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Leroy Seafood vs. GlobalData PLC | Leroy Seafood vs. Evolution Gaming Group | Leroy Seafood vs. New Residential Investment | Leroy Seafood vs. FC Investment Trust |
| Sligro Food vs. Catalyst Media Group | Sligro Food vs. CATLIN GROUP | Sligro Food vs. Magnora ASA | Sligro Food vs. RTW Venture Fund |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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