Correlation Between Slate Grocery and Global Crossing

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Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Global Crossing 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 Slate Grocery and Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Global Crossing Airlines, you can compare the effects of market volatilities on Slate Grocery and Global Crossing 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 Slate Grocery with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Global Crossing.

Diversification Opportunities for Slate Grocery and Global Crossing

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Slate and Global is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Slate Grocery i.e., Slate Grocery and Global Crossing go up and down completely randomly.

Pair Corralation between Slate Grocery and Global Crossing

Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 0.29 times more return on investment than Global Crossing. However, Slate Grocery REIT is 3.45 times less risky than Global Crossing. It trades about 0.16 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.01 per unit of risk. If you would invest  962.00  in Slate Grocery REIT on April 23, 2025 and sell it today you would earn a total of  96.00  from holding Slate Grocery REIT or generate 9.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Slate Grocery REIT  vs.  Global Crossing Airlines

 Performance 
       Timeline  
Slate Grocery REIT 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Slate Grocery REIT are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Slate Grocery may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Global Crossing Airlines 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Global Crossing is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Slate Grocery and Global Crossing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Slate Grocery and Global Crossing

The main advantage of trading using opposite Slate Grocery and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.
The idea behind Slate Grocery REIT and Global Crossing Airlines 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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