Correlation Between Sligro Food and LCI Industries
Can any of the company-specific risk be diversified away by investing in both Sligro Food and LCI Industries 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 LCI Industries 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 LCI Industries, you can compare the effects of market volatilities on Sligro Food and LCI Industries 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 LCI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and LCI Industries.
Diversification Opportunities for Sligro Food and LCI Industries
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sligro and LCI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and LCI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LCI Industries 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 LCI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LCI Industries has no effect on the direction of Sligro Food i.e., Sligro Food and LCI Industries go up and down completely randomly.
Pair Corralation between Sligro Food and LCI Industries
Assuming the 90 days horizon Sligro Food is expected to generate 2.74 times less return on investment than LCI Industries. But when comparing it to its historical volatility, Sligro Food Group is 4.35 times less risky than LCI Industries. It trades about 0.13 of its potential returns per unit of risk. LCI Industries is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 10,542 in LCI Industries on August 29, 2025 and sell it today you would earn a total of 1,030 from holding LCI Industries or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sligro Food Group vs. LCI Industries
Performance |
| Timeline |
| Sligro Food Group |
| LCI Industries |
Sligro Food and LCI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and LCI Industries
The main advantage of trading using opposite Sligro Food and LCI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, LCI Industries 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 LCI Industries will offset losses from the drop in LCI Industries' long position.| Sligro Food vs. NVIDIA | Sligro Food vs. Apple Inc | Sligro Food vs. Alphabet Inc Class C | Sligro Food vs. Microsoft |
| LCI Industries vs. Affinity Beverage Group | LCI Industries vs. Hat Trick Beverage | LCI Industries vs. ScanSource | LCI Industries vs. GungHo Online Entertainment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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