Correlation Between Sligro Food and DHC Acquisition
Can any of the company-specific risk be diversified away by investing in both Sligro Food and DHC Acquisition 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 DHC Acquisition 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 DHC Acquisition Corp, you can compare the effects of market volatilities on Sligro Food and DHC Acquisition 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 DHC Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and DHC Acquisition.
Diversification Opportunities for Sligro Food and DHC Acquisition
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sligro and DHC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and DHC Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHC Acquisition 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 DHC Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHC Acquisition Corp has no effect on the direction of Sligro Food i.e., Sligro Food and DHC Acquisition go up and down completely randomly.
Pair Corralation between Sligro Food and DHC Acquisition
If you would invest 1,025 in DHC Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding DHC Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sligro Food Group vs. DHC Acquisition Corp
Performance |
| Timeline |
| Sligro Food Group |
| DHC Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sligro Food and DHC Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and DHC Acquisition
The main advantage of trading using opposite Sligro Food and DHC Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, DHC Acquisition 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 DHC Acquisition will offset losses from the drop in DHC Acquisition's long position.| Sligro Food vs. Sapiens International | Sligro Food vs. Canlan Ice Sports | Sligro Food vs. Mattel Inc | Sligro Food vs. Playa Hotels Resorts |
| DHC Acquisition vs. 51Talk Online Education | DHC Acquisition vs. Mesa Air Group | DHC Acquisition vs. Ryanair Holdings PLC | DHC Acquisition vs. Where Food Comes |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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