Correlation Between SFL and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both SFL and Ingram Micro 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 SFL and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFL Corporation and Ingram Micro, you can compare the effects of market volatilities on SFL and Ingram Micro 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 SFL with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and Ingram Micro.
Diversification Opportunities for SFL and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SFL and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro and SFL 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 SFL Corporation are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of SFL i.e., SFL and Ingram Micro go up and down completely randomly.
Pair Corralation between SFL and Ingram Micro
If you would invest 1,249 in SFL Corporation on January 20, 2024 and sell it today you would earn a total of 22.00 from holding SFL Corporation or generate 1.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SFL Corp. vs. Ingram Micro
Performance |
Timeline |
SFL Corporation |
Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SFL and Ingram Micro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SFL and Ingram Micro
The main advantage of trading using opposite SFL and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.The idea behind SFL Corporation and Ingram Micro 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.Ingram Micro vs. Eastern Co | Ingram Micro vs. Lifevantage | Ingram Micro vs. Natural Alternatives International | Ingram Micro vs. Hooker Furniture |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |