Correlation Between DSM Firmenich and Sligro Food
Can any of the company-specific risk be diversified away by investing in both DSM Firmenich 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 DSM Firmenich and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSM Firmenich AG and Sligro Food Group, you can compare the effects of market volatilities on DSM Firmenich 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 DSM Firmenich with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSM Firmenich and Sligro Food.
Diversification Opportunities for DSM Firmenich and Sligro Food
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between DSM and Sligro is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DSM Firmenich AG 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 DSM Firmenich 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 DSM Firmenich AG 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 DSM Firmenich i.e., DSM Firmenich and Sligro Food go up and down completely randomly.
Pair Corralation between DSM Firmenich and Sligro Food
Assuming the 90 days trading horizon DSM Firmenich AG is expected to under-perform the Sligro Food. But the stock apears to be less risky and, when comparing its historical volatility, DSM Firmenich AG is 1.3 times less risky than Sligro Food. The stock trades about -0.1 of its potential returns per unit of risk. The Sligro Food Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,022 in Sligro Food Group on October 7, 2025 and sell it today you would earn a total of 8.00 from holding Sligro Food Group or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSM Firmenich AG vs. Sligro Food Group
Performance |
| Timeline |
| DSM Firmenich AG |
| Sligro Food Group |
DSM Firmenich and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSM Firmenich and Sligro Food
The main advantage of trading using opposite DSM Firmenich and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSM Firmenich 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.| DSM Firmenich vs. Heineken Holding NV | DSM Firmenich vs. Jde Peets Nv | DSM Firmenich vs. BV Delftsch Aardewerkfabriek | DSM Firmenich vs. Koninklijke Ahold Delhaize |
| Sligro Food vs. TKH Group NV | Sligro Food vs. Brunel International NV | Sligro Food vs. Koninklijke BAM Groep | Sligro Food vs. Aalberts Industries NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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