Correlation Between Peoples Insurance and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Peoples Insurance 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 Peoples Insurance and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Peoples Insurance and Sligro Food Group, you can compare the effects of market volatilities on Peoples Insurance 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 Peoples Insurance with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Insurance and Sligro Food.
Diversification Opportunities for Peoples Insurance and Sligro Food
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peoples and Sligro is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Peoples Insurance 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 Peoples Insurance 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 The Peoples Insurance 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 Peoples Insurance i.e., Peoples Insurance and Sligro Food go up and down completely randomly.
Pair Corralation between Peoples Insurance and Sligro Food
Assuming the 90 days horizon The Peoples Insurance is expected to generate 1.92 times more return on investment than Sligro Food. However, Peoples Insurance is 1.92 times more volatile than Sligro Food Group. It trades about 0.09 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 29.00 in The Peoples Insurance on November 3, 2024 and sell it today you would earn a total of 7.00 from holding The Peoples Insurance or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
The Peoples Insurance vs. Sligro Food Group
Performance |
| Timeline |
| Peoples Insurance |
| Sligro Food Group |
Peoples Insurance and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Insurance and Sligro Food
The main advantage of trading using opposite Peoples Insurance and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Insurance 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.| Peoples Insurance vs. Verra Mobility Corp | Peoples Insurance vs. Reservoir Media | Peoples Insurance vs. Sun Country Airlines | Peoples Insurance vs. National CineMedia |
| Sligro Food vs. City Office REIT | Sligro Food vs. Allient | Sligro Food vs. Eddy Smart Home | Sligro Food vs. TRI Pointe Homes |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |