Correlation Between Slate Grocery and S A P
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and S A P 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 Slate Grocery and S A P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Saputo Inc, you can compare the effects of market volatilities on Slate Grocery and S A P 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 Slate Grocery with a short position of S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and S A P.
Diversification Opportunities for Slate Grocery and S A P
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and SAP is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Saputo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saputo Inc and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saputo Inc has no effect on the direction of Slate Grocery i.e., Slate Grocery and S A P go up and down completely randomly.
Pair Corralation between Slate Grocery and S A P
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 1.62 times more return on investment than S A P. However, Slate Grocery is 1.62 times more volatile than Saputo Inc. It trades about 0.24 of its potential returns per unit of risk. Saputo Inc is currently generating about -0.07 per unit of risk. If you would invest 978.00 in Slate Grocery REIT on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Slate Grocery REIT or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Saputo Inc
Performance |
| Timeline |
| Slate Grocery REIT |
| Saputo Inc |
Slate Grocery and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and S A P
The main advantage of trading using opposite Slate Grocery and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.| Slate Grocery vs. Algonquin Power Utilities | Slate Grocery vs. Calian Technologies | Slate Grocery vs. Wishpond Technologies | Slate Grocery vs. National Bank of |
| S A P vs. Metro Inc | S A P vs. George Weston Limited | S A P vs. Gildan Activewear | S A P vs. Loblaw Companies Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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