Correlation Between SLC Agricola and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both SLC Agricola and Atlantic Sapphire 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 SLC Agricola and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLC Agricola SA and Atlantic Sapphire ASA, you can compare the effects of market volatilities on SLC Agricola and Atlantic Sapphire 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 SLC Agricola with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLC Agricola and Atlantic Sapphire.
Diversification Opportunities for SLC Agricola and Atlantic Sapphire
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLC and Atlantic is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SLC Agricola SA and Atlantic Sapphire ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire ASA and SLC Agricola 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 SLC Agricola SA are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire ASA has no effect on the direction of SLC Agricola i.e., SLC Agricola and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between SLC Agricola and Atlantic Sapphire
Assuming the 90 days horizon SLC Agricola SA is expected to generate 0.24 times more return on investment than Atlantic Sapphire. However, SLC Agricola SA is 4.23 times less risky than Atlantic Sapphire. It trades about 0.27 of its potential returns per unit of risk. Atlantic Sapphire ASA is currently generating about -0.11 per unit of risk. If you would invest 294.00 in SLC Agricola SA on November 27, 2024 and sell it today you would earn a total of 21.00 from holding SLC Agricola SA or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLC Agricola SA vs. Atlantic Sapphire ASA
Performance |
| Timeline |
| SLC Agricola SA |
| Atlantic Sapphire ASA |
SLC Agricola and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLC Agricola and Atlantic Sapphire
The main advantage of trading using opposite SLC Agricola and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLC Agricola position performs unexpectedly, Atlantic Sapphire 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 Atlantic Sapphire will offset losses from the drop in Atlantic Sapphire's long position.| SLC Agricola vs. Golden Agri Resources | SLC Agricola vs. Wilmar International | SLC Agricola vs. Brasilagro Adr | SLC Agricola vs. Alico Inc |
| Atlantic Sapphire vs. Forafric Global PLC | Atlantic Sapphire vs. Forafric Global PLC | Atlantic Sapphire vs. GrainCorp Limited | Atlantic Sapphire vs. Australian Agricultural |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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