Correlation Between Impax Asset and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Impax Asset 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 Impax Asset and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and Sligro Food Group, you can compare the effects of market volatilities on Impax Asset 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 Impax Asset with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and Sligro Food.
Diversification Opportunities for Impax Asset and Sligro Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impax and Sligro is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management 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 Impax Asset 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 Impax Asset Management 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 Impax Asset i.e., Impax Asset and Sligro Food go up and down completely randomly.
Pair Corralation between Impax Asset and Sligro Food
Assuming the 90 days trading horizon Impax Asset Management is expected to generate 2.18 times more return on investment than Sligro Food. However, Impax Asset is 2.18 times more volatile than Sligro Food Group. It trades about -0.08 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 34,800 in Impax Asset Management on September 3, 2024 and sell it today you would lose (1,450) from holding Impax Asset Management or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impax Asset Management vs. Sligro Food Group
Performance |
| Timeline |
| Impax Asset Management |
| Sligro Food Group |
Impax Asset and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and Sligro Food
The main advantage of trading using opposite Impax Asset and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset 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.| Impax Asset vs. Seche Environnement SA | Impax Asset vs. Veolia Environnement VE | Impax Asset vs. Check Point Software | Impax Asset vs. AIM ImmunoTech |
| Sligro Food vs. Catalyst Media Group | Sligro Food vs. CATLIN GROUP | Sligro Food vs. RTW Venture Fund | Sligro Food vs. Secure Property Development |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |