Correlation Between Sligro Food and BBB Foods
Can any of the company-specific risk be diversified away by investing in both Sligro Food and BBB Foods 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 BBB Foods 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 BBB Foods, you can compare the effects of market volatilities on Sligro Food and BBB Foods 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 BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and BBB Foods.
Diversification Opportunities for Sligro Food and BBB Foods
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sligro and BBB is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods 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 BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of Sligro Food i.e., Sligro Food and BBB Foods go up and down completely randomly.
Pair Corralation between Sligro Food and BBB Foods
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the BBB Foods. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.24 times less risky than BBB Foods. The pink sheet trades about -0.21 of its potential returns per unit of risk. The BBB Foods is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 3,200 in BBB Foods on August 31, 2024 and sell it today you would lose (378.00) from holding BBB Foods or give up 11.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. BBB Foods
Performance |
| Timeline |
| Sligro Food Group |
| BBB Foods |
Sligro Food and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and BBB Foods
The main advantage of trading using opposite Sligro Food and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| Sligro Food vs. Legacy Education | Sligro Food vs. Apple Inc | Sligro Food vs. NVIDIA | Sligro Food vs. Microsoft |
| BBB Foods vs. Citizens Bancorp Investment | BBB Foods vs. Stepstone Group | BBB Foods vs. Independence Realty Trust | BBB Foods vs. Western Sierra Mining |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |