Correlation Between Sligro Food and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Hilton Food 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 Hilton Food 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 Hilton Food Group, you can compare the effects of market volatilities on Sligro Food and Hilton Food 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Hilton Food.
Diversification Opportunities for Sligro Food and Hilton Food
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sligro and Hilton is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Sligro Food i.e., Sligro Food and Hilton Food go up and down completely randomly.
Pair Corralation between Sligro Food and Hilton Food
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the Hilton Food. In addition to that, Sligro Food is 1.03 times more volatile than Hilton Food Group. It trades about -0.08 of its total potential returns per unit of risk. Hilton Food Group is currently generating about 0.07 per unit of volatility. If you would invest 74,446 in Hilton Food Group on August 29, 2024 and sell it today you would earn a total of 14,954 from holding Hilton Food Group or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. Hilton Food Group
Performance |
| Timeline |
| Sligro Food Group |
| Hilton Food Group |
Sligro Food and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Hilton Food
The main advantage of trading using opposite Sligro Food and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| Sligro Food vs. Lendinvest PLC | Sligro Food vs. Neometals | Sligro Food vs. Coor Service Management | Sligro Food vs. Albion Technology General |
| Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Toyota Motor Corp | Hilton Food vs. MOL Hungarian Oil |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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