Correlation Between Fast Retailing and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Fast Retailing 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 Fast Retailing and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Retailing Co and Sligro Food Group, you can compare the effects of market volatilities on Fast Retailing 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 Fast Retailing with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and Sligro Food.
Diversification Opportunities for Fast Retailing and Sligro Food
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fast and Sligro is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co 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 Fast Retailing 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 Fast Retailing Co 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 Fast Retailing i.e., Fast Retailing and Sligro Food go up and down completely randomly.
Pair Corralation between Fast Retailing and Sligro Food
If you would invest 31,515 in Fast Retailing Co on September 26, 2024 and sell it today you would earn a total of 1,745 from holding Fast Retailing Co or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fast Retailing Co vs. Sligro Food Group
Performance |
| Timeline |
| Fast Retailing |
| Sligro Food Group |
Fast Retailing and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and Sligro Food
The main advantage of trading using opposite Fast Retailing and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing 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.| Fast Retailing vs. Aritzia | Fast Retailing vs. Boot Barn Holdings | Fast Retailing vs. Guess Inc | Fast Retailing vs. The TJX Companies |
| Sligro Food vs. Doubledown Interactive Co | Sligro Food vs. Fernhill Beverage | Sligro Food vs. Corsair Gaming | Sligro Food vs. Fevertree Drinks Plc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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