Correlation Between Sligro Food and NESNVX

Can any of the company-specific risk be diversified away by investing in both Sligro Food and NESNVX 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 NESNVX 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 NESNVX 3625 24 SEP 28, you can compare the effects of market volatilities on Sligro Food and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and NESNVX.

Diversification Opportunities for Sligro Food and NESNVX

0.24

Correlation Coefficient

Sligro Food  NESNVX

Modest diversification

The 3 months correlation between Sligro and NESNVX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and NESNVX 3625 24 SEP 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 3625 24 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 3625 24 has no effect on the direction of Sligro Food i.e., Sligro Food and NESNVX go up and down completely randomly.

Pair Corralation between Sligro Food and NESNVX

Assuming the 90 days horizon Sligro Food Group is expected to under-perform the NESNVX. In addition to that, Sligro Food is 2.75 times more volatile than NESNVX 3625 24 SEP 28. It trades about -0.05 of its total potential returns per unit of risk. NESNVX 3625 24 SEP 28 is currently generating about 0.02 per unit of volatility. If you would invest  9,612  in NESNVX 3625 24 SEP 28 on October 3, 2024 and sell it today you would earn a total of  168.00  from holding NESNVX 3625 24 SEP 28 or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	51.65%
Values	Daily Returns

Sligro Food Group  vs.  NESNVX 3625 24 SEP 28

Sligro Food Group

Risk-Adjusted Performance

0 of 100

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 latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

NESNVX 3625 24

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 3625 24 SEP 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sligro Food and NESNVX

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

The idea behind Sligro Food Group and NESNVX 3625 24 SEP 28 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.