Correlation Between Ion Beam and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Ion Beam 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 Ion Beam and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Sligro Food Group, you can compare the effects of market volatilities on Ion Beam 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 Ion Beam with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Sligro Food.
Diversification Opportunities for Ion Beam and Sligro Food
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ion and Sligro is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications 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 Ion Beam 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 Ion Beam Applications 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 Ion Beam i.e., Ion Beam and Sligro Food go up and down completely randomly.
Pair Corralation between Ion Beam and Sligro Food
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 2.38 times more return on investment than Sligro Food. However, Ion Beam is 2.38 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 -0.32 per unit of risk. If you would invest 1,355 in Ion Beam Applications on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Ion Beam Applications or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Sligro Food Group
Performance |
| Timeline |
| Ion Beam Applications |
| Sligro Food Group |
Ion Beam and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Sligro Food
The main advantage of trading using opposite Ion Beam and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam 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.| Ion Beam vs. Uniper SE | Ion Beam vs. Mulberry Group PLC | Ion Beam vs. London Security Plc | Ion Beam vs. Triad Group PLC |
| Sligro Food vs. DFS Furniture PLC | Sligro Food vs. Jupiter Fund Management | Sligro Food vs. Gamma Communications PLC | Sligro Food vs. Impax Asset Management |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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