Correlation Between Albion Technology and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Albion Technology and Sligro 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 Albion Technology and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and Sligro Food Group, you can compare the effects of market volatilities on Albion Technology and Sligro 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 Albion Technology with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and Sligro Food.
Diversification Opportunities for Albion Technology and Sligro Food
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Albion and Sligro is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group and Albion Technology 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 Albion Technology General are associated (or correlated) with Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Albion Technology i.e., Albion Technology and Sligro Food go up and down completely randomly.
Pair Corralation between Albion Technology and Sligro Food
Assuming the 90 days trading horizon Albion Technology General is expected to generate 0.56 times more return on investment than Sligro Food. However, Albion Technology General is 1.78 times less risky than Sligro Food. It trades about 0.01 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.06 per unit of risk. If you would invest 6,663 in Albion Technology General on November 27, 2024 and sell it today you would earn a total of 137.00 from holding Albion Technology General or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.26% |
| Values | Daily Returns |
Albion Technology General vs. Sligro Food Group
Performance |
| Timeline |
| Albion Technology General |
| Sligro Food Group |
Albion Technology and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and Sligro Food
The main advantage of trading using opposite Albion Technology and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology position performs unexpectedly, Sligro 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Albion Technology vs. Hansa Investment | Albion Technology vs. Lindsell Train Investment | Albion Technology vs. Smithson Investment Trust | Albion Technology vs. Vietnam Enterprise Investments |
| Sligro Food vs. Norwegian Air Shuttle | Sligro Food vs. Aptitude Software Group | Sligro Food vs. Coeur Mining | Sligro Food vs. Dolly Varden Silver |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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