Correlation Between KROGER and Sligro Food
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By analyzing existing cross correlation between KROGER 37 percent and Sligro Food Group, you can compare the effects of market volatilities on KROGER 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 KROGER with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and Sligro Food.
Diversification Opportunities for KROGER and Sligro Food
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KROGER and Sligro is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KROGER 37 percent 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 KROGER 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 KROGER 37 percent 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 KROGER i.e., KROGER and Sligro Food go up and down completely randomly.
Pair Corralation between KROGER and Sligro Food
Assuming the 90 days trading horizon KROGER 37 percent is expected to generate 0.36 times more return on investment than Sligro Food. However, KROGER 37 percent is 2.75 times less risky than Sligro Food. It trades about -0.23 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.22 per unit of risk. If you would invest 9,773 in KROGER 37 percent on September 4, 2024 and sell it today you would lose (408.00) from holding KROGER 37 percent or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
KROGER 37 percent vs. Sligro Food Group
Performance |
| Timeline |
| KROGER 37 percent |
| Sligro Food Group |
KROGER and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KROGER and Sligro Food
The main advantage of trading using opposite KROGER and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KROGER 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.The idea behind KROGER 37 percent and Sligro Food Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sligro Food vs. Entegris | Sligro Food vs. Playtech plc | Sligro Food vs. Everspin Technologies | Sligro Food vs. MACOM Technology Solutions |
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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