Correlation Between Philip Morris and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Philip Morris 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 Philip Morris and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philip Morris International and Sligro Food Group, you can compare the effects of market volatilities on Philip Morris 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 Philip Morris with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and Sligro Food.
Diversification Opportunities for Philip Morris and Sligro Food
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philip and Sligro is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International 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 Philip Morris 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 Philip Morris International 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 Philip Morris i.e., Philip Morris and Sligro Food go up and down completely randomly.
Pair Corralation between Philip Morris and Sligro Food
Allowing for the 90-day total investment horizon Philip Morris International is expected to generate 0.82 times more return on investment than Sligro Food. However, Philip Morris International is 1.22 times less risky than Sligro Food. It trades about 0.1 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.06 per unit of risk. If you would invest 8,563 in Philip Morris International on September 4, 2024 and sell it today you would earn a total of 4,539 from holding Philip Morris International or generate 53.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philip Morris International vs. Sligro Food Group
Performance |
| Timeline |
| Philip Morris Intern |
| Sligro Food Group |
Philip Morris and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and Sligro Food
The main advantage of trading using opposite Philip Morris and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris 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.| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
| Sligro Food vs. Entegris | Sligro Food vs. Playtech plc | Sligro Food vs. Everspin Technologies | Sligro Food vs. MACOM Technology Solutions |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |