Correlation Between Enova International and Silvercrest Asset
Can any of the company-specific risk be diversified away by investing in both Enova International and Silvercrest Asset 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 Enova International and Silvercrest Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enova International and Silvercrest Asset Management, you can compare the effects of market volatilities on Enova International and Silvercrest Asset 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 Enova International with a short position of Silvercrest Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova International and Silvercrest Asset.
Diversification Opportunities for Enova International and Silvercrest Asset
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enova and Silvercrest is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Enova International and Silvercrest Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercrest Asset and Enova International 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 Enova International are associated (or correlated) with Silvercrest Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercrest Asset has no effect on the direction of Enova International i.e., Enova International and Silvercrest Asset go up and down completely randomly.
Pair Corralation between Enova International and Silvercrest Asset
Given the investment horizon of 90 days Enova International is expected to under-perform the Silvercrest Asset. But the stock apears to be less risky and, when comparing its historical volatility, Enova International is 1.2 times less risky than Silvercrest Asset. The stock trades about -0.02 of its potential returns per unit of risk. The Silvercrest Asset Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,810 in Silvercrest Asset Management on September 19, 2024 and sell it today you would earn a total of 12.00 from holding Silvercrest Asset Management or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enova International vs. Silvercrest Asset Management
Performance |
| Timeline |
| Enova International |
| Silvercrest Asset |
Enova International and Silvercrest Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enova International and Silvercrest Asset
The main advantage of trading using opposite Enova International and Silvercrest Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova International position performs unexpectedly, Silvercrest Asset 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 Silvercrest Asset will offset losses from the drop in Silvercrest Asset's long position.| Enova International vs. Regional Management Corp | Enova International vs. Encore Capital Group | Enova International vs. Customers Bancorp | Enova International vs. Employers Holdings |
| Silvercrest Asset vs. Brightsphere Investment Group | Silvercrest Asset vs. DWS Municipal Income | Silvercrest Asset vs. Blackrock Muni Intermediate | Silvercrest Asset vs. Blackrock Muniyield |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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