Correlation Between Deltex Medical and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Deltex Medical 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 Deltex Medical and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deltex Medical Group and Sligro Food Group, you can compare the effects of market volatilities on Deltex Medical 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 Deltex Medical with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deltex Medical and Sligro Food.
Diversification Opportunities for Deltex Medical and Sligro Food
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Deltex and Sligro is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Deltex Medical 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 Deltex Medical 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 Deltex Medical 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 Deltex Medical i.e., Deltex Medical and Sligro Food go up and down completely randomly.
Pair Corralation between Deltex Medical and Sligro Food
Assuming the 90 days trading horizon Deltex Medical Group is expected to under-perform the Sligro Food. In addition to that, Deltex Medical is 3.11 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 -0.21 per unit of volatility. If you would invest 1,122 in Sligro Food Group on September 13, 2024 and sell it today you would lose (48.00) from holding Sligro Food Group or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deltex Medical Group vs. Sligro Food Group
Performance |
| Timeline |
| Deltex Medical Group |
| Sligro Food Group |
Deltex Medical and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deltex Medical and Sligro Food
The main advantage of trading using opposite Deltex Medical and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deltex Medical 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.| Deltex Medical vs. Silvercorp Metals | Deltex Medical vs. Jacquet Metal Service | Deltex Medical vs. National Beverage Corp | Deltex Medical vs. Empire Metals Limited |
| Sligro Food vs. Samsung Electronics Co | Sligro Food vs. Samsung Electronics Co | Sligro Food vs. Hyundai Motor | Sligro Food vs. Reliance Industries Ltd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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