Correlation Between Sligro Food and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Sligro Food and Pekin Life 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 Pekin Life 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 Pekin Life Insurance, you can compare the effects of market volatilities on Sligro Food and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Pekin Life.
Diversification Opportunities for Sligro Food and Pekin Life
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sligro and Pekin is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Sligro Food i.e., Sligro Food and Pekin Life go up and down completely randomly.
Pair Corralation between Sligro Food and Pekin Life
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the Pekin Life. In addition to that, Sligro Food is 12.74 times more volatile than Pekin Life Insurance. It trades about -0.07 of its total potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.06 per unit of volatility. If you would invest 1,153 in Pekin Life Insurance on September 20, 2024 and sell it today you would earn a total of 23.00 from holding Pekin Life Insurance or generate 1.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 99.6% |
Values | Daily Returns |
Sligro Food Group vs. Pekin Life Insurance
Performance |
Timeline |
Sligro Food Group |
Pekin Life Insurance |
Sligro Food and Pekin Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sligro Food and Pekin Life
The main advantage of trading using opposite Sligro Food and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life's long position.Sligro Food vs. Suburban Propane Partners | Sligro Food vs. Willamette Valley Vineyards | Sligro Food vs. Cheniere Energy Partners | Sligro Food vs. ScanSource |
Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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