Correlation Between Silvercorp Metals and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals and Lendinvest PLC 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 Lendinvest PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and Lendinvest PLC, you can compare the effects of market volatilities on Silvercorp Metals and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and Lendinvest PLC.
Diversification Opportunities for Silvercorp Metals and Lendinvest PLC
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silvercorp and Lendinvest is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Silvercorp Metals i.e., Silvercorp Metals and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Silvercorp Metals and Lendinvest PLC
Assuming the 90 days trading horizon Silvercorp Metals is expected to generate 1.22 times more return on investment than Lendinvest PLC. However, Silvercorp Metals is 1.22 times more volatile than Lendinvest PLC. It trades about 0.03 of its potential returns per unit of risk. Lendinvest PLC is currently generating about -0.07 per unit of risk. If you would invest 405.00 in Silvercorp Metals on September 12, 2024 and sell it today you would earn a total of 58.00 from holding Silvercorp Metals or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.88% |
| Values | Daily Returns |
Silvercorp Metals vs. Lendinvest PLC
Performance |
| Timeline |
| Silvercorp Metals |
| Lendinvest PLC |
Silvercorp Metals and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and Lendinvest PLC
The main advantage of trading using opposite Silvercorp Metals and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| Silvercorp Metals vs. Hong Kong Land | Silvercorp Metals vs. Neometals | Silvercorp Metals vs. Coor Service Management | Silvercorp Metals vs. Fidelity Sustainable USD |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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