Correlation Between IES Holdings and Silo Pharma
Can any of the company-specific risk be diversified away by investing in both IES Holdings and Silo Pharma 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 IES Holdings and Silo Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IES Holdings and Silo Pharma, you can compare the effects of market volatilities on IES Holdings and Silo Pharma 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 IES Holdings with a short position of Silo Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of IES Holdings and Silo Pharma.
Diversification Opportunities for IES Holdings and Silo Pharma
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IES and Silo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding IES Holdings and Silo Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silo Pharma and IES Holdings 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 IES Holdings are associated (or correlated) with Silo Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silo Pharma has no effect on the direction of IES Holdings i.e., IES Holdings and Silo Pharma go up and down completely randomly.
Pair Corralation between IES Holdings and Silo Pharma
Given the investment horizon of 90 days IES Holdings is expected to generate 0.35 times more return on investment than Silo Pharma. However, IES Holdings is 2.85 times less risky than Silo Pharma. It trades about 0.16 of its potential returns per unit of risk. Silo Pharma is currently generating about 0.03 per unit of risk. If you would invest 8,300 in IES Holdings on September 4, 2024 and sell it today you would earn a total of 21,280 from holding IES Holdings or generate 256.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IES Holdings vs. Silo Pharma
Performance |
| Timeline |
| IES Holdings |
| Silo Pharma |
IES Holdings and Silo Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IES Holdings and Silo Pharma
The main advantage of trading using opposite IES Holdings and Silo Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IES Holdings position performs unexpectedly, Silo Pharma 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 Silo Pharma will offset losses from the drop in Silo Pharma's long position.| IES Holdings vs. EMCOR Group | IES Holdings vs. Comfort Systems USA | IES Holdings vs. Primoris Services | IES Holdings vs. Granite Construction Incorporated |
| Silo Pharma vs. Protagenic Therapeutics | Silo Pharma vs. Rezolute | Silo Pharma vs. Lumos Pharma | Silo Pharma vs. Anebulo Pharmaceuticals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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