Correlation Between Smart Digital and Smithfield Foods,

Can any of the company-specific risk be diversified away by investing in both Smart Digital and Smithfield Foods, 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 Smart Digital and Smithfield Foods, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Smart Digital Group and Smithfield Foods, Common, you can compare the effects of market volatilities on Smart Digital and Smithfield Foods, 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 Smart Digital with a short position of Smithfield Foods,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Digital and Smithfield Foods,.

Diversification Opportunities for Smart Digital and Smithfield Foods,

0.37

Correlation Coefficient

Smart Digital  Smithfield Foods,

Weak diversification

The 3 months correlation between Smart and Smithfield is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Smart Digital Group and Smithfield Foods, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smithfield Foods, Common and Smart Digital 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 Smart Digital Group are associated (or correlated) with Smithfield Foods,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smithfield Foods, Common has no effect on the direction of Smart Digital i.e., Smart Digital and Smithfield Foods, go up and down completely randomly.

Pair Corralation between Smart Digital and Smithfield Foods,

Considering the 90-day investment horizon Smart Digital Group is expected to generate 11.13 times more return on investment than Smithfield Foods,. However, Smart Digital is 11.13 times more volatile than Smithfield Foods, Common. It trades about 0.11 of its potential returns per unit of risk. Smithfield Foods, Common is currently generating about 0.13 per unit of risk. If you would invest  710.00  in Smart Digital Group on May 22, 2025 and sell it today you would earn a total of  260.00  from holding Smart Digital Group or generate 36.62% return on investment over 90 days.

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

Smart Digital Group  vs.  Smithfield Foods, Common

Smart Digital Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Digital Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Smart Digital displayed solid returns over the last few months and may actually be approaching a breakup point.

Smithfield Foods, Common

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Smithfield Foods, Common are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Smithfield Foods, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Smart Digital and Smithfield Foods,

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

The idea behind Smart Digital Group and Smithfield Foods, Common 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.