Correlation Between Slate Grocery and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on Slate Grocery and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Maple Leaf.
Diversification Opportunities for Slate Grocery and Maple Leaf
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Slate and Maple is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Slate Grocery i.e., Slate Grocery and Maple Leaf go up and down completely randomly.
Pair Corralation between Slate Grocery and Maple Leaf
Assuming the 90 days trading horizon Slate Grocery is expected to generate 2.45 times less return on investment than Maple Leaf. But when comparing it to its historical volatility, Slate Grocery REIT is 1.21 times less risky than Maple Leaf. It trades about 0.14 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,445 in Maple Leaf Foods on April 25, 2025 and sell it today you would earn a total of 548.00 from holding Maple Leaf Foods or generate 22.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Slate Grocery REIT vs. Maple Leaf Foods
Performance |
Timeline |
Slate Grocery REIT |
Maple Leaf Foods |
Slate Grocery and Maple Leaf Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Slate Grocery and Maple Leaf
The main advantage of trading using opposite Slate Grocery and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.Slate Grocery vs. Slate Grocery REIT | Slate Grocery vs. SmartCentres Real Estate | Slate Grocery vs. RioCan Real Estate | Slate Grocery vs. Automotive Properties Real |
Maple Leaf vs. Tincorp Metals | Maple Leaf vs. BMO Aggregate Bond | Maple Leaf vs. Brompton European Dividend | Maple Leaf vs. Solar Alliance Energy |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |