Correlation Between ASR Nederland and Sligro Food
Can any of the company-specific risk be diversified away by investing in both ASR Nederland 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 ASR Nederland and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASR Nederland NV and Sligro Food Group, you can compare the effects of market volatilities on ASR Nederland 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 ASR Nederland with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASR Nederland and Sligro Food.
Diversification Opportunities for ASR Nederland and Sligro Food
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASR and Sligro is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ASR Nederland NV 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 ASR Nederland 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 ASR Nederland NV 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 ASR Nederland i.e., ASR Nederland and Sligro Food go up and down completely randomly.
Pair Corralation between ASR Nederland and Sligro Food
Assuming the 90 days trading horizon ASR Nederland NV is expected to generate 1.19 times more return on investment than Sligro Food. However, ASR Nederland is 1.19 times more volatile than Sligro Food Group. It trades about 0.06 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 3,348 in ASR Nederland NV on August 26, 2024 and sell it today you would earn a total of 1,165 from holding ASR Nederland NV or generate 34.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASR Nederland NV vs. Sligro Food Group
Performance |
| Timeline |
| ASR Nederland NV |
| Sligro Food Group |
ASR Nederland and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASR Nederland and Sligro Food
The main advantage of trading using opposite ASR Nederland and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASR Nederland 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.| ASR Nederland vs. NN Group NV | ASR Nederland vs. Koninklijke Ahold Delhaize | ASR Nederland vs. BE Semiconductor Industries | ASR Nederland vs. Aegon NV |
| Sligro Food vs. TKH Group NV | Sligro Food vs. Brunel International NV | Sligro Food vs. Koninklijke BAM Groep | Sligro Food vs. Koninklijke Vopak NV |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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