Correlation Between TESCO PLC and Sligro Food

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TESCO PLC 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 TESCO PLC and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TESCO PLC LS 0633333 and Sligro Food Group, you can compare the effects of market volatilities on TESCO PLC 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 TESCO PLC with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TESCO PLC and Sligro Food.

Diversification Opportunities for TESCO PLC and Sligro Food

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between TESCO and Sligro is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding TESCO PLC LS 0633333 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 TESCO PLC 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 TESCO PLC LS 0633333 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 TESCO PLC i.e., TESCO PLC and Sligro Food go up and down completely randomly.

Pair Corralation between TESCO PLC and Sligro Food

Assuming the 90 days trading horizon TESCO PLC LS 0633333 is expected to generate 0.69 times more return on investment than Sligro Food. However, TESCO PLC LS 0633333 is 1.44 times less risky than Sligro Food. It trades about 0.16 of its potential returns per unit of risk. Sligro Food Group is currently generating about 0.04 per unit of risk. If you would invest  419.00  in TESCO PLC LS 0633333 on April 23, 2025 and sell it today you would earn a total of  71.00  from holding TESCO PLC LS 0633333 or generate 16.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

TESCO PLC LS 0633333  vs.  Sligro Food Group

 Performance 
       Timeline  
TESCO PLC LS 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TESCO PLC LS 0633333 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TESCO PLC reported solid returns over the last few months and may actually be approaching a breakup point.
Sligro Food Group 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sligro Food Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sligro Food is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TESCO PLC and Sligro Food Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TESCO PLC and Sligro Food

The main advantage of trading using opposite TESCO PLC and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TESCO PLC 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 TESCO PLC LS 0633333 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.
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Content Syndication
Quickly integrate customizable finance content to your own investment portal