Correlation Between Celestica and Denarius Silver
Can any of the company-specific risk be diversified away by investing in both Celestica and Denarius Silver 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 Celestica and Denarius Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Denarius Silver Corp, you can compare the effects of market volatilities on Celestica and Denarius Silver 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 Celestica with a short position of Denarius Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Denarius Silver.
Diversification Opportunities for Celestica and Denarius Silver
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celestica and Denarius is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Denarius Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denarius Silver Corp and Celestica 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 Celestica are associated (or correlated) with Denarius Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denarius Silver Corp has no effect on the direction of Celestica i.e., Celestica and Denarius Silver go up and down completely randomly.
Pair Corralation between Celestica and Denarius Silver
Considering the 90-day investment horizon Celestica is expected to generate 1.4 times more return on investment than Denarius Silver. However, Celestica is 1.4 times more volatile than Denarius Silver Corp. It trades about 0.18 of its potential returns per unit of risk. Denarius Silver Corp is currently generating about 0.12 per unit of risk. If you would invest 9,307 in Celestica on November 2, 2024 and sell it today you would earn a total of 2,108 from holding Celestica or generate 22.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Celestica vs. Denarius Silver Corp
Performance |
| Timeline |
| Celestica |
| Denarius Silver Corp |
Celestica and Denarius Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Denarius Silver
The main advantage of trading using opposite Celestica and Denarius Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Denarius Silver 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 Denarius Silver will offset losses from the drop in Denarius Silver's long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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