Correlation Between Apple and SLIGRO FOOD

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

By analyzing existing cross correlation between Apple Inc and SLIGRO FOOD GROUP, you can compare the effects of market volatilities on Apple and SLIGRO FOOD 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 Apple with a short position of SLIGRO FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SLIGRO FOOD.

Diversification Opportunities for Apple and SLIGRO FOOD

-0.27

Correlation Coefficient

Apple  SLIGRO FOOD

Very good diversification

The 3 months correlation between Apple and SLIGRO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SLIGRO FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLIGRO FOOD GROUP and Apple 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 Apple Inc are associated (or correlated) with SLIGRO FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLIGRO FOOD GROUP has no effect on the direction of Apple i.e., Apple and SLIGRO FOOD go up and down completely randomly.

Pair Corralation between Apple and SLIGRO FOOD

Assuming the 90 days trading horizon Apple is expected to generate 2.8 times less return on investment than SLIGRO FOOD. In addition to that, Apple is 1.19 times more volatile than SLIGRO FOOD GROUP. It trades about 0.07 of its total potential returns per unit of risk. SLIGRO FOOD GROUP is currently generating about 0.22 per unit of volatility. If you would invest  1,015  in SLIGRO FOOD GROUP on April 6, 2025 and sell it today you would earn a total of  407.00  from holding SLIGRO FOOD GROUP or generate 40.1% return on investment over 90 days.

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

Apple Inc  vs.  SLIGRO FOOD GROUP

Apple Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Apple exhibited solid returns over the last few months and may actually be approaching a breakup point.

SLIGRO FOOD GROUP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SLIGRO FOOD GROUP are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SLIGRO FOOD unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and SLIGRO FOOD

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

The idea behind Apple Inc and SLIGRO FOOD GROUP 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.