Correlation Between Sligro Food and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Sligro Food and CCSB Financial 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 CCSB Financial 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 CCSB Financial Corp, you can compare the effects of market volatilities on Sligro Food and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and CCSB Financial.
Diversification Opportunities for Sligro Food and CCSB Financial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sligro and CCSB is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Sligro Food i.e., Sligro Food and CCSB Financial go up and down completely randomly.
Pair Corralation between Sligro Food and CCSB Financial
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the CCSB Financial. In addition to that, Sligro Food is 3.14 times more volatile than CCSB Financial Corp. It trades about -0.22 of its total potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.05 per unit of volatility. If you would invest 1,200 in CCSB Financial Corp on September 4, 2024 and sell it today you would lose (10.00) from holding CCSB Financial Corp or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sligro Food Group vs. CCSB Financial Corp
Performance |
| Timeline |
| Sligro Food Group |
| CCSB Financial Corp |
Sligro Food and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and CCSB Financial
The main advantage of trading using opposite Sligro Food and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Sligro Food vs. Entegris | Sligro Food vs. Playtech plc | Sligro Food vs. Everspin Technologies | Sligro Food vs. MACOM Technology Solutions |
| CCSB Financial vs. Western Asset Investment | CCSB Financial vs. Franklin Wireless Corp | CCSB Financial vs. Tower One Wireless | CCSB Financial vs. CapitaLand Investment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |