Correlation Between Sligro Food and Fund
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Fund 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 Fund 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 Fund Inc, you can compare the effects of market volatilities on Sligro Food and Fund 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 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Fund.
Diversification Opportunities for Sligro Food and Fund
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sligro and Fund is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fund Inc 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 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fund Inc has no effect on the direction of Sligro Food i.e., Sligro Food and Fund go up and down completely randomly.
Pair Corralation between Sligro Food and Fund
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the Fund. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 4.2 times less risky than Fund. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Fund Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Fund Inc on September 5, 2024 and sell it today you would earn a total of 114.00 from holding Fund Inc or generate 103.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.06% |
| Values | Daily Returns |
Sligro Food Group vs. Fund Inc
Performance |
| Timeline |
| Sligro Food Group |
| Fund Inc |
Sligro Food and Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Fund
The main advantage of trading using opposite Sligro Food and Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Fund 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 Fund will offset losses from the drop in Fund's long position.| Sligro Food vs. Funko Inc | Sligro Food vs. IPG Photonics | Sligro Food vs. Life Time Group | Sligro Food vs. Brunswick |
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 Stocks Directory module to find actively traded stocks across global markets.
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