Correlation Between AdCapital and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both AdCapital and Silvercorp Metals 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 AdCapital and Silvercorp Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdCapital AG and Silvercorp Metals, you can compare the effects of market volatilities on AdCapital and Silvercorp Metals 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 AdCapital with a short position of Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdCapital and Silvercorp Metals.
Diversification Opportunities for AdCapital and Silvercorp Metals
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AdCapital and Silvercorp is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AdCapital AG and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals and AdCapital 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 AdCapital AG are associated (or correlated) with Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of AdCapital i.e., AdCapital and Silvercorp Metals go up and down completely randomly.
Pair Corralation between AdCapital and Silvercorp Metals
Assuming the 90 days horizon AdCapital AG is expected to generate 0.64 times more return on investment than Silvercorp Metals. However, AdCapital AG is 1.56 times less risky than Silvercorp Metals. It trades about -0.08 of its potential returns per unit of risk. Silvercorp Metals is currently generating about -0.25 per unit of risk. If you would invest 240.00 in AdCapital AG on September 22, 2024 and sell it today you would lose (22.00) from holding AdCapital AG or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdCapital AG vs. Silvercorp Metals
Performance |
| Timeline |
| AdCapital AG |
| Silvercorp Metals |
AdCapital and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdCapital and Silvercorp Metals
The main advantage of trading using opposite AdCapital and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdCapital position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| AdCapital vs. Blackstone Group | AdCapital vs. The Bank of | AdCapital vs. Ameriprise Financial | AdCapital vs. State Street |
| Silvercorp Metals vs. Ares Management Corp | Silvercorp Metals vs. ALTAIR RES INC | Silvercorp Metals vs. Brockhaus Capital Management | Silvercorp Metals vs. Air New Zealand |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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