Correlation Between Sligro Food and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp, you can compare the effects of market volatilities on Sligro Food and Nextplat Corp 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 Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Nextplat Corp.
Diversification Opportunities for Sligro Food and Nextplat Corp
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sligro and Nextplat is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat 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 Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of Sligro Food i.e., Sligro Food and Nextplat Corp go up and down completely randomly.
Pair Corralation between Sligro Food and Nextplat Corp
Assuming the 90 days horizon Sligro Food Group is expected to generate 0.34 times more return on investment than Nextplat Corp. However, Sligro Food Group is 2.93 times less risky than Nextplat Corp. It trades about -0.21 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.19 per unit of risk. If you would invest 1,366 in Sligro Food Group on September 2, 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sligro Food Group vs. Nextplat Corp
Performance |
| Timeline |
| Sligro Food Group |
| Nextplat Corp |
Sligro Food and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Nextplat Corp
The main advantage of trading using opposite Sligro Food and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Nextplat Corp 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 Nextplat Corp will offset losses from the drop in Nextplat Corp's long position.| Sligro Food vs. Legacy Education | Sligro Food vs. Apple Inc | Sligro Food vs. NVIDIA | Sligro Food vs. Microsoft |
| Nextplat Corp vs. Ke Holdings | Nextplat Corp vs. nCino Inc | Nextplat Corp vs. Kingsoft Cloud Holdings | Nextplat Corp vs. Jfrog |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |