Correlation Between Gamma Communications and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Gamma Communications 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 Gamma Communications and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamma Communications PLC and Sligro Food Group, you can compare the effects of market volatilities on Gamma Communications 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 Gamma Communications with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamma Communications and Sligro Food.
Diversification Opportunities for Gamma Communications and Sligro Food
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gamma and Sligro is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gamma Communications PLC 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 Gamma Communications 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 Gamma Communications PLC 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 Gamma Communications i.e., Gamma Communications and Sligro Food go up and down completely randomly.
Pair Corralation between Gamma Communications and Sligro Food
Assuming the 90 days trading horizon Gamma Communications PLC is expected to generate 0.92 times more return on investment than Sligro Food. However, Gamma Communications PLC is 1.09 times less risky than Sligro Food. It trades about -0.02 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.25 per unit of risk. If you would invest 158,800 in Gamma Communications PLC on September 3, 2024 and sell it today you would lose (800.00) from holding Gamma Communications PLC or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamma Communications PLC vs. Sligro Food Group
Performance |
| Timeline |
| Gamma Communications PLC |
| Sligro Food Group |
Gamma Communications and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamma Communications and Sligro Food
The main advantage of trading using opposite Gamma Communications and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamma Communications 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.| Gamma Communications vs. Jacquet Metal Service | Gamma Communications vs. GreenX Metals | Gamma Communications vs. Fevertree Drinks Plc | Gamma Communications vs. Wheaton Precious Metals |
| Sligro Food vs. Catalyst Media Group | Sligro Food vs. CATLIN GROUP | Sligro Food vs. Magnora ASA | Sligro Food vs. RTW Venture Fund |
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.
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