Correlation Between Sligro Food and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Sligro Food and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Uniper SE.
Diversification Opportunities for Sligro Food and Uniper SE
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sligro and Uniper is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Sligro Food i.e., Sligro Food and Uniper SE go up and down completely randomly.
Pair Corralation between Sligro Food and Uniper SE
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the Uniper SE. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 3.02 times less risky than Uniper SE. The stock trades about -0.06 of its potential returns per unit of risk. The Uniper SE is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 6,038 in Uniper SE on October 11, 2024 and sell it today you would lose (1,783) from holding Uniper SE or give up 29.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sligro Food Group vs. Uniper SE
Performance |
| Timeline |
| Sligro Food Group |
| Uniper SE |
Sligro Food and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Uniper SE
The main advantage of trading using opposite Sligro Food and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Sligro Food vs. GreenX Metals | Sligro Food vs. Empire Metals Limited | Sligro Food vs. Blackstone Loan Financing | Sligro Food vs. Monster Beverage Corp |
| Uniper SE vs. Sligro Food Group | Uniper SE vs. CVS Health Corp | Uniper SE vs. MyHealthChecked Plc | Uniper SE vs. Bell 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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