Correlation Between Sligro Food and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Everyman Media 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 Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on Sligro Food and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Everyman Media.
Diversification Opportunities for Sligro Food and Everyman Media
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sligro and Everyman is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Sligro Food i.e., Sligro Food and Everyman Media go up and down completely randomly.
Pair Corralation between Sligro Food and Everyman Media
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the Everyman Media. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.3 times less risky than Everyman Media. The stock trades about -0.1 of its potential returns per unit of risk. The Everyman Media Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,250 in Everyman Media Group on September 12, 2024 and sell it today you would lose (950.00) from holding Everyman Media Group or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. Everyman Media Group
Performance |
| Timeline |
| Sligro Food Group |
| Everyman Media Group |
Sligro Food and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Everyman Media
The main advantage of trading using opposite Sligro Food and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Sligro Food vs. Primary Health Properties | Sligro Food vs. Deltex Medical Group | Sligro Food vs. CompuGroup Medical AG | Sligro Food vs. Abingdon Health Plc |
| Everyman Media vs. Catalyst Media Group | Everyman Media vs. CATLIN GROUP | Everyman Media vs. Tamburi Investment Partners | Everyman Media vs. Magnora ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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