Correlation Between HAL Trust and Sligro Food
Can any of the company-specific risk be diversified away by investing in both HAL Trust 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 HAL Trust and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAL Trust and Sligro Food Group, you can compare the effects of market volatilities on HAL Trust 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 HAL Trust with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and Sligro Food.
Diversification Opportunities for HAL Trust and Sligro Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HAL and Sligro is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust 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 HAL Trust 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 HAL Trust 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 HAL Trust i.e., HAL Trust and Sligro Food go up and down completely randomly.
Pair Corralation between HAL Trust and Sligro Food
Assuming the 90 days trading horizon HAL Trust is expected to generate 0.73 times more return on investment than Sligro Food. However, HAL Trust is 1.37 times less risky than Sligro Food. It trades about 0.0 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.05 per unit of risk. If you would invest 11,614 in HAL Trust on August 29, 2024 and sell it today you would lose (94.00) from holding HAL Trust or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAL Trust vs. Sligro Food Group
Performance |
| Timeline |
| HAL Trust |
| Sligro Food Group |
HAL Trust and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAL Trust and Sligro Food
The main advantage of trading using opposite HAL Trust and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAL Trust 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.| HAL Trust vs. Ackermans Van Haaren | HAL Trust vs. Koninklijke Vopak NV | HAL Trust vs. Groep Brussel Lambert | HAL Trust vs. Sofina Socit Anonyme |
| Sligro Food vs. Unilever PLC | Sligro Food vs. Koninklijke Philips NV | Sligro Food vs. NN Group NV | Sligro Food vs. ING Groep 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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