Correlation Between Stagwell and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Stagwell and Sligro Food 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 Stagwell and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and Sligro Food Group, you can compare the effects of market volatilities on Stagwell and Sligro Food 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 Stagwell with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and Sligro Food.
Diversification Opportunities for Stagwell and Sligro Food
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stagwell and Sligro is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group and Stagwell 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 Stagwell are associated (or correlated) with Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Stagwell i.e., Stagwell and Sligro Food go up and down completely randomly.
Pair Corralation between Stagwell and Sligro Food
Given the investment horizon of 90 days Stagwell is expected to generate 2.75 times more return on investment than Sligro Food. However, Stagwell is 2.75 times more volatile than Sligro Food Group. It trades about 0.01 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.05 per unit of risk. If you would invest 689.00 in Stagwell on October 13, 2024 and sell it today you would lose (95.00) from holding Stagwell or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.15% |
| Values | Daily Returns |
Stagwell vs. Sligro Food Group
Performance |
| Timeline |
| Stagwell |
| Sligro Food Group |
Stagwell and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and Sligro Food
The main advantage of trading using opposite Stagwell and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| Sligro Food vs. AKITA Drilling | Sligro Food vs. Stagwell | Sligro Food vs. Awilco Drilling PLC | Sligro Food vs. National CineMedia |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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