Correlation Between Sligro Food and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Sligro Food and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Evolution Gaming.
Diversification Opportunities for Sligro Food and Evolution Gaming
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sligro and Evolution is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Sligro Food i.e., Sligro Food and Evolution Gaming go up and down completely randomly.
Pair Corralation between Sligro Food and Evolution Gaming
Assuming the 90 days trading horizon Sligro Food Group is expected to generate 0.7 times more return on investment than Evolution Gaming. However, Sligro Food Group is 1.42 times less risky than Evolution Gaming. It trades about -0.05 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.04 per unit of risk. If you would invest 1,529 in Sligro Food Group on October 30, 2024 and sell it today you would lose (448.00) from holding Sligro Food Group or give up 29.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sligro Food Group vs. Evolution Gaming Group
Performance |
| Timeline |
| Sligro Food Group |
| Evolution Gaming |
Sligro Food and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Evolution Gaming
The main advantage of trading using opposite Sligro Food and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Sligro Food vs. Jacquet Metal Service | Sligro Food vs. Empire Metals Limited | Sligro Food vs. GlobalData PLC | Sligro Food vs. Alliance Data Systems |
| Evolution Gaming vs. Moneta Money Bank | Evolution Gaming vs. Baker Steel Resources | Evolution Gaming vs. Foresight Environmental Infrastructure | Evolution Gaming vs. Impax Environmental Markets |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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