Correlation Between Premium Catering and Sadot

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Can any of the company-specific risk be diversified away by investing in both Premium Catering and Sadot 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 Premium Catering and Sadot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premium Catering Limited and Sadot Group, you can compare the effects of market volatilities on Premium Catering and Sadot 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 Premium Catering with a short position of Sadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premium Catering and Sadot.

Diversification Opportunities for Premium Catering and Sadot

-0.86
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Premium and Sadot is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Premium Catering Limited and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot Group and Premium Catering 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 Premium Catering Limited are associated (or correlated) with Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Premium Catering i.e., Premium Catering and Sadot go up and down completely randomly.

Pair Corralation between Premium Catering and Sadot

Allowing for the 90-day total investment horizon Premium Catering Limited is expected to generate 0.65 times more return on investment than Sadot. However, Premium Catering Limited is 1.54 times less risky than Sadot. It trades about 0.1 of its potential returns per unit of risk. Sadot Group is currently generating about -0.07 per unit of risk. If you would invest  719.00  in Premium Catering Limited on August 11, 2025 and sell it today you would earn a total of  221.00  from holding Premium Catering Limited or generate 30.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Premium Catering Limited  vs.  Sadot Group

 Performance 
       Timeline  
Premium Catering 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Premium Catering Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Premium Catering exhibited solid returns over the last few months and may actually be approaching a breakup point.
Sadot Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Premium Catering and Sadot Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Premium Catering and Sadot

The main advantage of trading using opposite Premium Catering and Sadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premium Catering position performs unexpectedly, Sadot 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 Sadot will offset losses from the drop in Sadot's long position.
The idea behind Premium Catering Limited and Sadot 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.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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