Correlation Between Aptitude Software and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Aptitude Software 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 Aptitude Software and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptitude Software Group and Sligro Food Group, you can compare the effects of market volatilities on Aptitude Software 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 Aptitude Software with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptitude Software and Sligro Food.
Diversification Opportunities for Aptitude Software and Sligro Food
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aptitude and Sligro is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aptitude Software Group 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 Aptitude Software 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 Aptitude Software Group 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 Aptitude Software i.e., Aptitude Software and Sligro Food go up and down completely randomly.
Pair Corralation between Aptitude Software and Sligro Food
Assuming the 90 days trading horizon Aptitude Software Group is expected to under-perform the Sligro Food. In addition to that, Aptitude Software is 1.25 times more volatile than Sligro Food Group. It trades about -0.08 of its total potential returns per unit of risk. Sligro Food Group is currently generating about -0.08 per unit of volatility. If you would invest 1,115 in Sligro Food Group on October 30, 2024 and sell it today you would lose (34.00) from holding Sligro Food Group or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptitude Software Group vs. Sligro Food Group
Performance |
| Timeline |
| Aptitude Software |
| Sligro Food Group |
Aptitude Software and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptitude Software and Sligro Food
The main advantage of trading using opposite Aptitude Software and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptitude Software 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.| Aptitude Software vs. Compagnie Plastic Omnium | Aptitude Software vs. Automatic Data Processing | Aptitude Software vs. Medical Properties Trust | Aptitude Software vs. United Airlines Holdings |
| Sligro Food vs. Jacquet Metal Service | Sligro Food vs. Empire Metals Limited | Sligro Food vs. GlobalData PLC | Sligro Food vs. Alliance Data Systems |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |