Correlation Between Salzer Electronics and Silgo Retail
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By analyzing existing cross correlation between Salzer Electronics Limited and Silgo Retail Limited, you can compare the effects of market volatilities on Salzer Electronics and Silgo Retail 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 Salzer Electronics with a short position of Silgo Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Silgo Retail.
Diversification Opportunities for Salzer Electronics and Silgo Retail
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salzer and Silgo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Silgo Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgo Retail Limited and Salzer Electronics 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 Salzer Electronics Limited are associated (or correlated) with Silgo Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgo Retail Limited has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Silgo Retail go up and down completely randomly.
Pair Corralation between Salzer Electronics and Silgo Retail
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 1.45 times more return on investment than Silgo Retail. However, Salzer Electronics is 1.45 times more volatile than Silgo Retail Limited. It trades about 0.12 of its potential returns per unit of risk. Silgo Retail Limited is currently generating about -0.34 per unit of risk. If you would invest 111,790 in Salzer Electronics Limited on October 30, 2024 and sell it today you would earn a total of 20,280 from holding Salzer Electronics Limited or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Silgo Retail Limited
Performance |
| Timeline |
| Salzer Electronics |
| Silgo Retail Limited |
Salzer Electronics and Silgo Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Silgo Retail
The main advantage of trading using opposite Salzer Electronics and Silgo Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Silgo Retail 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 Silgo Retail will offset losses from the drop in Silgo Retail's long position.| Salzer Electronics vs. WESTLIFE FOODWORLD LIMITED | Salzer Electronics vs. Compucom Software Limited | Salzer Electronics vs. Laxmi Organic Industries | Salzer Electronics vs. Ami Organics Limited |
| Silgo Retail vs. Osia Hyper Retail | Silgo Retail vs. Hindustan Foods Limited | Silgo Retail vs. Baazar Style Retail | Silgo Retail vs. Bikaji Foods International |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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