Correlation Between Sligro Food and CCSB Financial

Can any of the company-specific risk be diversified away by investing in both Sligro Food and CCSB Financial 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 CCSB Financial 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 CCSB Financial Corp, you can compare the effects of market volatilities on Sligro Food and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and CCSB Financial.

Diversification Opportunities for Sligro Food and CCSB Financial

0.0

Correlation Coefficient

Sligro Food  CCSB Financial

Pay attention - limited upside

The 3 months correlation between Sligro and CCSB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Sligro Food i.e., Sligro Food and CCSB Financial go up and down completely randomly.

Pair Corralation between Sligro Food and CCSB Financial

Assuming the 90 days horizon Sligro Food Group is expected to under-perform the CCSB Financial. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.93 times less risky than CCSB Financial. The pink sheet trades about -0.05 of its potential returns per unit of risk. The CCSB Financial Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,450  in CCSB Financial Corp on December 1, 2024 and sell it today you would lose (370.00) from holding CCSB Financial Corp or give up 25.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.56%
Values	Daily Returns

Sligro Food Group  vs.  CCSB Financial Corp

Sligro Food Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sligro Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sligro Food is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CCSB Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CCSB Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Sligro Food and CCSB Financial

The main advantage of trading using opposite Sligro Food and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.

The idea behind Sligro Food Group and CCSB Financial Corp 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.