Correlation Between Sendas Distribuidora and Ocado Group
Can any of the company-specific risk be diversified away by investing in both Sendas Distribuidora and Ocado Group 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 Sendas Distribuidora and Ocado Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sendas Distribuidora SA and Ocado Group plc, you can compare the effects of market volatilities on Sendas Distribuidora and Ocado Group 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 Sendas Distribuidora with a short position of Ocado Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sendas Distribuidora and Ocado Group.
Diversification Opportunities for Sendas Distribuidora and Ocado Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sendas and Ocado is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sendas Distribuidora SA and Ocado Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocado Group plc and Sendas Distribuidora 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 Sendas Distribuidora SA are associated (or correlated) with Ocado Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocado Group plc has no effect on the direction of Sendas Distribuidora i.e., Sendas Distribuidora and Ocado Group go up and down completely randomly.
Pair Corralation between Sendas Distribuidora and Ocado Group
Given the investment horizon of 90 days Sendas Distribuidora SA is expected to under-perform the Ocado Group. In addition to that, Sendas Distribuidora is 1.07 times more volatile than Ocado Group plc. It trades about -0.11 of its total potential returns per unit of risk. Ocado Group plc is currently generating about -0.06 per unit of volatility. If you would invest 788.00 in Ocado Group plc on December 2, 2024 and sell it today you would lose (132.00) from holding Ocado Group plc or give up 16.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 45.9% |
Values | Daily Returns |
Sendas Distribuidora SA vs. Ocado Group plc
Performance |
Timeline |
Sendas Distribuidora |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Ocado Group plc |
Sendas Distribuidora and Ocado Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sendas Distribuidora and Ocado Group
The main advantage of trading using opposite Sendas Distribuidora and Ocado Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sendas Distribuidora position performs unexpectedly, Ocado Group 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 Ocado Group will offset losses from the drop in Ocado Group's long position.Sendas Distribuidora vs. Village Super Market | Sendas Distribuidora vs. Weis Markets | Sendas Distribuidora vs. Ingles Markets Incorporated | Sendas Distribuidora vs. Grocery Outlet Holding |
Ocado Group vs. Natural Grocers by | Ocado Group vs. Grocery Outlet Holding | Ocado Group vs. Village Super Market | Ocado Group vs. Ingles Markets Incorporated |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Stocks Directory Find actively traded stocks across global markets | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
CEOs Directory Screen CEOs from public companies around the world | |
Fundamental Analysis View fundamental data based on most recent published financial statements |