Correlation Between Silver Touch and Power Finance
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By analyzing existing cross correlation between Silver Touch Technologies and Power Finance, you can compare the effects of market volatilities on Silver Touch and Power Finance 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 Silver Touch with a short position of Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Touch and Power Finance.
Diversification Opportunities for Silver Touch and Power Finance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silver and Power is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Silver Touch Technologies and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Finance and Silver Touch 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 Silver Touch Technologies are associated (or correlated) with Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of Silver Touch i.e., Silver Touch and Power Finance go up and down completely randomly.
Pair Corralation between Silver Touch and Power Finance
Assuming the 90 days trading horizon Silver Touch Technologies is expected to under-perform the Power Finance. But the stock apears to be less risky and, when comparing its historical volatility, Silver Touch Technologies is 1.85 times less risky than Power Finance. The stock trades about -0.05 of its potential returns per unit of risk. The Power Finance is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 43,810 in Power Finance on August 26, 2024 and sell it today you would earn a total of 3,985 from holding Power Finance or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Silver Touch Technologies vs. Power Finance
Performance |
| Timeline |
| Silver Touch Technologies |
| Power Finance |
Silver Touch and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Touch and Power Finance
The main advantage of trading using opposite Silver Touch and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Touch position performs unexpectedly, Power Finance 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 Power Finance will offset losses from the drop in Power Finance's long position.| Silver Touch vs. Kingfa Science Technology | Silver Touch vs. Rico Auto Industries | Silver Touch vs. GACM Technologies Limited | Silver Touch vs. COSMO FIRST LIMITED |
| Power Finance vs. SIL Investments Limited | Power Finance vs. ILFS Investment Managers | Power Finance vs. Sambhaav Media Limited | Power Finance vs. Silver Touch Technologies |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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