Correlation Between Sligro Food and Arkema SA
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Arkema SA 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 Arkema SA 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 Arkema SA, you can compare the effects of market volatilities on Sligro Food and Arkema SA 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 Arkema SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Arkema SA.
Diversification Opportunities for Sligro Food and Arkema SA
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sligro and Arkema is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Arkema SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkema SA 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 Arkema SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkema SA has no effect on the direction of Sligro Food i.e., Sligro Food and Arkema SA go up and down completely randomly.
Pair Corralation between Sligro Food and Arkema SA
If you would invest 8,840 in Arkema SA on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Arkema SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sligro Food Group vs. Arkema SA
Performance |
| Timeline |
| Sligro Food Group |
| Arkema SA |
Sligro Food and Arkema SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Arkema SA
The main advantage of trading using opposite Sligro Food and Arkema SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Arkema SA 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 Arkema SA will offset losses from the drop in Arkema SA's long position.| Sligro Food vs. Funko Inc | Sligro Food vs. IPG Photonics | Sligro Food vs. Life Time Group | Sligro Food vs. Brunswick |
| Arkema SA vs. Sherwin Williams Co | Arkema SA vs. Air Liquide SA | Arkema SA vs. Air Products and | Arkema SA vs. Ecolab Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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