Correlation Between Silvercorp Metals and Creo Medical
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals and Creo Medical 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 Silvercorp Metals and Creo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and Creo Medical Group, you can compare the effects of market volatilities on Silvercorp Metals and Creo Medical 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 Silvercorp Metals with a short position of Creo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and Creo Medical.
Diversification Opportunities for Silvercorp Metals and Creo Medical
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silvercorp and Creo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group and Silvercorp Metals 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 Silvercorp Metals are associated (or correlated) with Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of Silvercorp Metals i.e., Silvercorp Metals and Creo Medical go up and down completely randomly.
Pair Corralation between Silvercorp Metals and Creo Medical
Assuming the 90 days trading horizon Silvercorp Metals is expected to generate 1.16 times more return on investment than Creo Medical. However, Silvercorp Metals is 1.16 times more volatile than Creo Medical Group. It trades about 0.04 of its potential returns per unit of risk. Creo Medical Group is currently generating about -0.13 per unit of risk. If you would invest 456.00 in Silvercorp Metals on November 28, 2024 and sell it today you would earn a total of 55.00 from holding Silvercorp Metals or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.21% |
| Values | Daily Returns |
Silvercorp Metals vs. Creo Medical Group
Performance |
| Timeline |
| Silvercorp Metals |
| Creo Medical Group |
Silvercorp Metals and Creo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and Creo Medical
The main advantage of trading using opposite Silvercorp Metals and Creo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals position performs unexpectedly, Creo Medical 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 Creo Medical will offset losses from the drop in Creo Medical's long position.| Silvercorp Metals vs. Sealed Air Corp | Silvercorp Metals vs. Take Two Interactive Software | Silvercorp Metals vs. Allianz Technology Trust | Silvercorp Metals vs. Check Point Software |
| Creo Medical vs. Monks Investment Trust | Creo Medical vs. Beeks Trading | Creo Medical vs. Schroders Investment Trusts | Creo Medical vs. Jade Road Investments |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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