Correlation Between Sligro Food and ALSO Holding
Can any of the company-specific risk be diversified away by investing in both Sligro Food and ALSO Holding 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 ALSO Holding 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 ALSO Holding AG, you can compare the effects of market volatilities on Sligro Food and ALSO Holding 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 ALSO Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and ALSO Holding.
Diversification Opportunities for Sligro Food and ALSO Holding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sligro and ALSO is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and ALSO Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALSO Holding AG 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 ALSO Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALSO Holding AG has no effect on the direction of Sligro Food i.e., Sligro Food and ALSO Holding go up and down completely randomly.
Pair Corralation between Sligro Food and ALSO Holding
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the ALSO Holding. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.24 times less risky than ALSO Holding. The stock trades about -0.05 of its potential returns per unit of risk. The ALSO Holding AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17,127 in ALSO Holding AG on September 2, 2024 and sell it today you would earn a total of 6,373 from holding ALSO Holding AG or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. ALSO Holding AG
Performance |
| Timeline |
| Sligro Food Group |
| ALSO Holding AG |
Sligro Food and ALSO Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and ALSO Holding
The main advantage of trading using opposite Sligro Food and ALSO Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, ALSO Holding 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 ALSO Holding will offset losses from the drop in ALSO Holding's long position.| Sligro Food vs. Uniper SE | Sligro Food vs. Mulberry Group PLC | Sligro Food vs. London Security Plc | Sligro Food vs. Triad Group PLC |
| ALSO Holding vs. Telecom Italia SpA | ALSO Holding vs. Axfood AB | ALSO Holding vs. EVS Broadcast Equipment | ALSO Holding vs. Sligro Food Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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