Correlation Between Sligro Food and Village Super
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Village Super 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 Village Super 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 Village Super Market, you can compare the effects of market volatilities on Sligro Food and Village Super 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 Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Village Super.
Diversification Opportunities for Sligro Food and Village Super
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sligro and Village is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market 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 Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of Sligro Food i.e., Sligro Food and Village Super go up and down completely randomly.
Pair Corralation between Sligro Food and Village Super
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the Village Super. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.25 times less risky than Village Super. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Village Super Market is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,896 in Village Super Market on August 30, 2024 and sell it today you would earn a total of 311.00 from holding Village Super Market or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sligro Food Group vs. Village Super Market
Performance |
| Timeline |
| Sligro Food Group |
| Village Super Market |
Sligro Food and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Village Super
The main advantage of trading using opposite Sligro Food and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.| Sligro Food vs. Avient Corp | Sligro Food vs. Braskem SA Class | Sligro Food vs. Kite Realty Group | Sligro Food vs. Axalta Coating Systems |
| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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