Correlation Between Sangoma Technologies and Slate Grocery

Can any of the company-specific risk be diversified away by investing in both Sangoma Technologies and Slate Grocery 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 Sangoma Technologies and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sangoma Technologies Corp and Slate Grocery REIT, you can compare the effects of market volatilities on Sangoma Technologies and Slate Grocery 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 Sangoma Technologies with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangoma Technologies and Slate Grocery.

Diversification Opportunities for Sangoma Technologies and Slate Grocery

-0.62

Correlation Coefficient

Sangoma Technologies  Slate Grocery

Excellent diversification

The 3 months correlation between Sangoma and Slate is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sangoma Technologies Corp and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and Sangoma Technologies 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 Sangoma Technologies Corp are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of Sangoma Technologies i.e., Sangoma Technologies and Slate Grocery go up and down completely randomly.

Pair Corralation between Sangoma Technologies and Slate Grocery

Assuming the 90 days trading horizon Sangoma Technologies Corp is expected to generate 1.64 times more return on investment than Slate Grocery. However, Sangoma Technologies is 1.64 times more volatile than Slate Grocery REIT. It trades about 0.22 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about -0.09 per unit of risk. If you would invest  798.00  in Sangoma Technologies Corp on October 20, 2024 and sell it today you would earn a total of  267.00  from holding Sangoma Technologies Corp or generate 33.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Sangoma Technologies Corp  vs.  Slate Grocery REIT

Sangoma Technologies Corp

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sangoma Technologies Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Sangoma Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Slate Grocery REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Slate Grocery REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Sangoma Technologies and Slate Grocery

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

The idea behind Sangoma Technologies Corp and Slate Grocery REIT 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.