Correlation Between Silver Castle and Ackerstein
Can any of the company-specific risk be diversified away by investing in both Silver Castle and Ackerstein 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 Silver Castle and Ackerstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Castle Holdings and Ackerstein Group, you can compare the effects of market volatilities on Silver Castle and Ackerstein 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 Castle with a short position of Ackerstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Castle and Ackerstein.
Diversification Opportunities for Silver Castle and Ackerstein
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silver and Ackerstein is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Silver Castle Holdings and Ackerstein Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackerstein Group and Silver Castle 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 Castle Holdings are associated (or correlated) with Ackerstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackerstein Group has no effect on the direction of Silver Castle i.e., Silver Castle and Ackerstein go up and down completely randomly.
Pair Corralation between Silver Castle and Ackerstein
Assuming the 90 days trading horizon Silver Castle Holdings is expected to generate 4.03 times more return on investment than Ackerstein. However, Silver Castle is 4.03 times more volatile than Ackerstein Group. It trades about 0.05 of its potential returns per unit of risk. Ackerstein Group is currently generating about 0.14 per unit of risk. If you would invest 47,620 in Silver Castle Holdings on September 14, 2024 and sell it today you would earn a total of 10,110 from holding Silver Castle Holdings or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Silver Castle Holdings vs. Ackerstein Group
Performance |
| Timeline |
| Silver Castle Holdings |
| Ackerstein Group |
Silver Castle and Ackerstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Castle and Ackerstein
The main advantage of trading using opposite Silver Castle and Ackerstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Castle position performs unexpectedly, Ackerstein 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 Ackerstein will offset losses from the drop in Ackerstein's long position.| Silver Castle vs. Altshuler Shaham Financial | Silver Castle vs. Meitav Dash Investments | Silver Castle vs. Mivtach Shamir | Silver Castle vs. YD More Investments |
| Ackerstein vs. B Communications | Ackerstein vs. Rapac Communication Infrastructure | Ackerstein vs. Retailors | Ackerstein vs. Bezeq Israeli Telecommunication |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |