Correlation Between Sligro Food and Sydbank
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Sydbank 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 Sydbank 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 Sydbank, you can compare the effects of market volatilities on Sligro Food and Sydbank 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 Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Sydbank.
Diversification Opportunities for Sligro Food and Sydbank
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sligro and Sydbank is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank 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 Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Sligro Food i.e., Sligro Food and Sydbank go up and down completely randomly.
Pair Corralation between Sligro Food and Sydbank
Assuming the 90 days trading horizon Sligro Food Group is expected to generate 0.49 times more return on investment than Sydbank. However, Sligro Food Group is 2.05 times less risky than Sydbank. It trades about 0.05 of its potential returns per unit of risk. Sydbank is currently generating about -0.01 per unit of risk. If you would invest 1,078 in Sligro Food Group on October 11, 2024 and sell it today you would earn a total of 11.00 from holding Sligro Food Group or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sligro Food Group vs. Sydbank
Performance |
| Timeline |
| Sligro Food Group |
| Sydbank |
Sligro Food and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Sydbank
The main advantage of trading using opposite Sligro Food and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Sligro Food vs. Nordic Semiconductor ASA | Sligro Food vs. Gamma Communications PLC | Sligro Food vs. British American Tobacco | Sligro Food vs. Alliance Data Systems |
| Sydbank vs. Bankers Investment Trust | Sydbank vs. SMA Solar Technology | Sydbank vs. Seraphim Space Investment | Sydbank vs. Primorus Investments plc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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