Correlation Between Silver Ridge and Axiata Group
Can any of the company-specific risk be diversified away by investing in both Silver Ridge and Axiata Group 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 Silver Ridge and Axiata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Ridge Holdings and Axiata Group Bhd, you can compare the effects of market volatilities on Silver Ridge and Axiata Group 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 Silver Ridge with a short position of Axiata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Ridge and Axiata Group.
Diversification Opportunities for Silver Ridge and Axiata Group
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silver and Axiata is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Silver Ridge Holdings and Axiata Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axiata Group Bhd and Silver Ridge 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 Silver Ridge Holdings are associated (or correlated) with Axiata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axiata Group Bhd has no effect on the direction of Silver Ridge i.e., Silver Ridge and Axiata Group go up and down completely randomly.
Pair Corralation between Silver Ridge and Axiata Group
Assuming the 90 days trading horizon Silver Ridge Holdings is expected to generate 3.09 times more return on investment than Axiata Group. However, Silver Ridge is 3.09 times more volatile than Axiata Group Bhd. It trades about 0.04 of its potential returns per unit of risk. Axiata Group Bhd is currently generating about -0.02 per unit of risk. If you would invest 42.00 in Silver Ridge Holdings on August 27, 2024 and sell it today you would earn a total of 15.00 from holding Silver Ridge Holdings or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Ridge Holdings vs. Axiata Group Bhd
Performance |
| Timeline |
| Silver Ridge Holdings |
| Axiata Group Bhd |
Silver Ridge and Axiata Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Ridge and Axiata Group
The main advantage of trading using opposite Silver Ridge and Axiata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Ridge position performs unexpectedly, Axiata Group 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 Axiata Group will offset losses from the drop in Axiata Group's long position.| Silver Ridge vs. Malayan Banking Bhd | Silver Ridge vs. Public Bank Bhd | Silver Ridge vs. Petronas Chemicals Group | Silver Ridge vs. Tenaga Nasional Bhd |
| Axiata Group vs. Digistar Bhd | Axiata Group vs. Minetech Resources Bhd | Axiata Group vs. OpenSys M Bhd | Axiata Group vs. Insas Bhd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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