Correlation Between SLIGRO FOOD and Apple
Can any of the company-specific risk be diversified away by investing in both SLIGRO FOOD and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on SLIGRO FOOD and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLIGRO FOOD and Apple.
Diversification Opportunities for SLIGRO FOOD and Apple
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLIGRO and Apple is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SLIGRO FOOD GROUP and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of SLIGRO FOOD i.e., SLIGRO FOOD and Apple go up and down completely randomly.
Pair Corralation between SLIGRO FOOD and Apple
Assuming the 90 days trading horizon SLIGRO FOOD GROUP is expected to under-perform the Apple. In addition to that, SLIGRO FOOD is 1.64 times more volatile than Apple Inc. It trades about -0.18 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.79 per unit of volatility. If you would invest 21,145 in Apple Inc on September 13, 2024 and sell it today you would earn a total of 2,630 from holding Apple Inc or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLIGRO FOOD GROUP vs. Apple Inc
Performance |
| Timeline |
| SLIGRO FOOD GROUP |
| Apple Inc |
SLIGRO FOOD and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLIGRO FOOD and Apple
The main advantage of trading using opposite SLIGRO FOOD and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLIGRO FOOD position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| SLIGRO FOOD vs. Apple Inc | SLIGRO FOOD vs. Apple Inc | SLIGRO FOOD vs. Apple Inc | SLIGRO FOOD vs. Apple Inc |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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