Correlation Between Sligro Food and SUMITOMO
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By analyzing existing cross correlation between Sligro Food Group and SUMITOMO MITSUI FINL, you can compare the effects of market volatilities on Sligro Food and SUMITOMO 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 SUMITOMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and SUMITOMO.
Diversification Opportunities for Sligro Food and SUMITOMO
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sligro and SUMITOMO is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and SUMITOMO MITSUI FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITOMO MITSUI FINL 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 SUMITOMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITOMO MITSUI FINL has no effect on the direction of Sligro Food i.e., Sligro Food and SUMITOMO go up and down completely randomly.
Pair Corralation between Sligro Food and SUMITOMO
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the SUMITOMO. In addition to that, Sligro Food is 2.6 times more volatile than SUMITOMO MITSUI FINL. It trades about -0.21 of its total potential returns per unit of risk. SUMITOMO MITSUI FINL is currently generating about -0.06 per unit of volatility. If you would invest 9,675 in SUMITOMO MITSUI FINL on August 31, 2024 and sell it today you would lose (138.00) from holding SUMITOMO MITSUI FINL or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. SUMITOMO MITSUI FINL
Performance |
| Timeline |
| Sligro Food Group |
| SUMITOMO MITSUI FINL |
Sligro Food and SUMITOMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and SUMITOMO
The main advantage of trading using opposite Sligro Food and SUMITOMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, SUMITOMO 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 SUMITOMO will offset losses from the drop in SUMITOMO's long position.| Sligro Food vs. Legacy Education | Sligro Food vs. Apple Inc | Sligro Food vs. NVIDIA | Sligro Food vs. Microsoft |
| SUMITOMO vs. Old Republic International | SUMITOMO vs. Sun Life Financial | SUMITOMO vs. Cheniere Energy Partners | SUMITOMO vs. Transportadora de Gas |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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