Correlation Between Sligro Food and Allfunds

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

Diversification Opportunities for Sligro Food and Allfunds

0.78

Correlation Coefficient

Sligro Food  Allfunds

Poor diversification

The 3 months correlation between Sligro and Allfunds is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Allfunds Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allfunds Group 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 Allfunds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allfunds Group has no effect on the direction of Sligro Food i.e., Sligro Food and Allfunds go up and down completely randomly.

Pair Corralation between Sligro Food and Allfunds

Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the Allfunds. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.31 times less risky than Allfunds. The stock trades about -0.03 of its potential returns per unit of risk. The Allfunds Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  592.00  in Allfunds Group on April 18, 2025 and sell it today you would earn a total of  132.00  from holding Allfunds Group or generate 22.3% return on investment over 90 days.

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

Sligro Food Group  vs.  Allfunds Group

Sligro Food Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sligro Food Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sligro Food may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Allfunds Group

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Allfunds Group are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Allfunds sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sligro Food and Allfunds

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

The idea behind Sligro Food Group and Allfunds 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.