Correlation Between Salfacorp and Multiexport Foods
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By analyzing existing cross correlation between Salfacorp and Multiexport Foods SA, you can compare the effects of market volatilities on Salfacorp and Multiexport Foods 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 Salfacorp with a short position of Multiexport Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Multiexport Foods.
Diversification Opportunities for Salfacorp and Multiexport Foods
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salfacorp and Multiexport is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Multiexport Foods SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multiexport Foods and Salfacorp 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 Salfacorp are associated (or correlated) with Multiexport Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multiexport Foods has no effect on the direction of Salfacorp i.e., Salfacorp and Multiexport Foods go up and down completely randomly.
Pair Corralation between Salfacorp and Multiexport Foods
Assuming the 90 days trading horizon Salfacorp is expected to generate 1.06 times more return on investment than Multiexport Foods. However, Salfacorp is 1.06 times more volatile than Multiexport Foods SA. It trades about 0.17 of its potential returns per unit of risk. Multiexport Foods SA is currently generating about -0.08 per unit of risk. If you would invest 59,999 in Salfacorp on December 6, 2024 and sell it today you would earn a total of 2,735 from holding Salfacorp or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 72.73% |
| Values | Daily Returns |
Salfacorp vs. Multiexport Foods SA
Performance |
| Timeline |
| Salfacorp |
| Multiexport Foods |
Salfacorp and Multiexport Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Multiexport Foods
The main advantage of trading using opposite Salfacorp and Multiexport Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Multiexport Foods 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 Multiexport Foods will offset losses from the drop in Multiexport Foods' long position.The idea behind Salfacorp and Multiexport Foods SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Managers module to screen money managers from public funds and ETFs managed around the world.
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