Correlation Between Sligro Food and Highest Performances
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Highest Performances 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 Highest Performances 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 Highest Performances Holdings, you can compare the effects of market volatilities on Sligro Food and Highest Performances 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 Highest Performances. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Highest Performances.
Diversification Opportunities for Sligro Food and Highest Performances
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sligro and Highest is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Highest Performances Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highest Performances 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 Highest Performances. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highest Performances has no effect on the direction of Sligro Food i.e., Sligro Food and Highest Performances go up and down completely randomly.
Pair Corralation between Sligro Food and Highest Performances
Assuming the 90 days horizon Sligro Food Group is expected to generate 0.53 times more return on investment than Highest Performances. However, Sligro Food Group is 1.9 times less risky than Highest Performances. It trades about -0.21 of its potential returns per unit of risk. Highest Performances Holdings is currently generating about -0.2 per unit of risk. If you would invest 1,366 in Sligro Food Group on September 1, 2024 and sell it today you would lose (166.00) from holding Sligro Food Group or give up 12.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sligro Food Group vs. Highest Performances Holdings
Performance |
| Timeline |
| Sligro Food Group |
| Highest Performances |
Sligro Food and Highest Performances Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Highest Performances
The main advantage of trading using opposite Sligro Food and Highest Performances positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Highest Performances 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 Highest Performances will offset losses from the drop in Highest Performances' long position.| Sligro Food vs. Emerson Radio | Sligro Food vs. Canlan Ice Sports | Sligro Food vs. Playtika Holding Corp | Sligro Food vs. Doubledown Interactive Co |
| Highest Performances vs. Radcom | Highest Performances vs. BCE Inc | Highest Performances vs. Universal Display | Highest Performances vs. Western Digital |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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