Correlation Between Sligro Food and GURU ORGANIC

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

Diversification Opportunities for Sligro Food and GURU ORGANIC

-0.06

Correlation Coefficient

Sligro Food  GURU ORGANIC

Good diversification

The 3 months correlation between Sligro and GURU is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and GURU ORGANIC ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GURU ORGANIC ENERGY 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 GURU ORGANIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GURU ORGANIC ENERGY has no effect on the direction of Sligro Food i.e., Sligro Food and GURU ORGANIC go up and down completely randomly.

Pair Corralation between Sligro Food and GURU ORGANIC

Assuming the 90 days horizon Sligro Food Group is expected to under-perform the GURU ORGANIC. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.46 times less risky than GURU ORGANIC. The stock trades about -0.05 of its potential returns per unit of risk. The GURU ORGANIC ENERGY is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  115.00  in GURU ORGANIC ENERGY on May 6, 2025 and sell it today you would lose (2.00) from holding GURU ORGANIC ENERGY or give up 1.74% of portfolio value over 90 days.

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

Sligro Food Group  vs.  GURU ORGANIC ENERGY

Sligro Food Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sligro Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

GURU ORGANIC ENERGY

Risk-Adjusted Performance

Very Weak

Over the last 90 days GURU ORGANIC ENERGY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GURU ORGANIC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sligro Food and GURU ORGANIC

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

The idea behind Sligro Food Group and GURU ORGANIC ENERGY 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.