Correlation Between Sligro Food and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Atalaya Mining 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 Atalaya Mining 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 Atalaya Mining, you can compare the effects of market volatilities on Sligro Food and Atalaya Mining 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 Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Atalaya Mining.
Diversification Opportunities for Sligro Food and Atalaya Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sligro and Atalaya is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining 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 Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Sligro Food i.e., Sligro Food and Atalaya Mining go up and down completely randomly.
Pair Corralation between Sligro Food and Atalaya Mining
Assuming the 90 days trading horizon Sligro Food Group is expected to generate 0.6 times more return on investment than Atalaya Mining. However, Sligro Food Group is 1.66 times less risky than Atalaya Mining. It trades about -0.13 of its potential returns per unit of risk. Atalaya Mining is currently generating about -0.12 per unit of risk. If you would invest 1,214 in Sligro Food Group on September 26, 2024 and sell it today you would lose (121.00) from holding Sligro Food Group or give up 9.97% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sligro Food Group vs. Atalaya Mining
Performance |
Timeline |
Sligro Food Group |
Atalaya Mining |
Sligro Food and Atalaya Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sligro Food and Atalaya Mining
The main advantage of trading using opposite Sligro Food and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.Sligro Food vs. Uniper SE | Sligro Food vs. Mulberry Group PLC | Sligro Food vs. London Security Plc | Sligro Food vs. Triad Group PLC |
Atalaya Mining vs. Premier Foods PLC | Atalaya Mining vs. Associated British Foods | Atalaya Mining vs. Sligro Food Group | Atalaya Mining vs. Live Nation Entertainment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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