Correlation Between Sligro Food and Aehr Test
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Aehr Test 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 Sligro Food and Aehr Test into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and Aehr Test Systems, you can compare the effects of market volatilities on Sligro Food and Aehr Test 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 Sligro Food with a short position of Aehr Test. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Aehr Test.
Diversification Opportunities for Sligro Food and Aehr Test
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sligro and Aehr is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Aehr Test Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aehr Test Systems and Sligro Food 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 Sligro Food Group are associated (or correlated) with Aehr Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aehr Test Systems has no effect on the direction of Sligro Food i.e., Sligro Food and Aehr Test go up and down completely randomly.
Pair Corralation between Sligro Food and Aehr Test
Assuming the 90 days horizon Sligro Food Group is expected to generate 0.32 times more return on investment than Aehr Test. However, Sligro Food Group is 3.12 times less risky than Aehr Test. It trades about -0.07 of its potential returns per unit of risk. Aehr Test Systems is currently generating about -0.03 per unit of risk. If you would invest 1,705 in Sligro Food Group on September 2, 2024 and sell it today you would lose (505.00) from holding Sligro Food Group or give up 29.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sligro Food Group vs. Aehr Test Systems
Performance |
| Timeline |
| Sligro Food Group |
| Aehr Test Systems |
Sligro Food and Aehr Test Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Aehr Test
The main advantage of trading using opposite Sligro Food and Aehr Test positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Aehr Test 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 Aehr Test will offset losses from the drop in Aehr Test's long position.| Sligro Food vs. Legacy Education | Sligro Food vs. Apple Inc | Sligro Food vs. NVIDIA | Sligro Food vs. Microsoft |
| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |