Correlation Between Sligro Food and Darden Restaurants
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Darden Restaurants 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 Sligro Food and Darden Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and Darden Restaurants, you can compare the effects of market volatilities on Sligro Food and Darden Restaurants 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 Sligro Food with a short position of Darden Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Darden Restaurants.
Diversification Opportunities for Sligro Food and Darden Restaurants
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sligro and Darden is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Darden Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Darden Restaurants and Sligro Food 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 Sligro Food Group are associated (or correlated) with Darden Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Darden Restaurants has no effect on the direction of Sligro Food i.e., Sligro Food and Darden Restaurants go up and down completely randomly.
Pair Corralation between Sligro Food and Darden Restaurants
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the Darden Restaurants. In addition to that, Sligro Food is 2.05 times more volatile than Darden Restaurants. It trades about -0.1 of its total potential returns per unit of risk. Darden Restaurants is currently generating about 0.03 per unit of volatility. If you would invest 18,488 in Darden Restaurants on October 25, 2024 and sell it today you would earn a total of 62.00 from holding Darden Restaurants or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Sligro Food Group vs. Darden Restaurants
Performance |
| Timeline |
| Sligro Food Group |
| Darden Restaurants |
Sligro Food and Darden Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Darden Restaurants
The main advantage of trading using opposite Sligro Food and Darden Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Darden Restaurants 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 Darden Restaurants will offset losses from the drop in Darden Restaurants' long position.| Sligro Food vs. Amedeo Air Four | Sligro Food vs. Indutrade AB | Sligro Food vs. Scandic Hotels Group | Sligro Food vs. Finnair Oyj |
| Darden Restaurants vs. Systemair AB | Darden Restaurants vs. Fair Oaks Income | Darden Restaurants vs. HCA Healthcare | Darden Restaurants vs. Norwegian Air Shuttle |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |