Correlation Between Silver Castle and Generation Capital
Can any of the company-specific risk be diversified away by investing in both Silver Castle and Generation Capital 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 Generation Capital 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 Generation Capital, you can compare the effects of market volatilities on Silver Castle and Generation Capital 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 Generation Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Castle and Generation Capital.
Diversification Opportunities for Silver Castle and Generation Capital
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silver and Generation is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Silver Castle Holdings and Generation Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Capital 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 Generation Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Capital has no effect on the direction of Silver Castle i.e., Silver Castle and Generation Capital go up and down completely randomly.
Pair Corralation between Silver Castle and Generation Capital
Assuming the 90 days trading horizon Silver Castle Holdings is expected to under-perform the Generation Capital. In addition to that, Silver Castle is 1.57 times more volatile than Generation Capital. It trades about -0.04 of its total potential returns per unit of risk. Generation Capital is currently generating about 0.13 per unit of volatility. If you would invest 6,480 in Generation Capital on August 31, 2024 and sell it today you would earn a total of 590.00 from holding Generation Capital or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
Silver Castle Holdings vs. Generation Capital
Performance |
| Timeline |
| Silver Castle Holdings |
| Generation Capital |
Silver Castle and Generation Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Castle and Generation Capital
The main advantage of trading using opposite Silver Castle and Generation Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Castle position performs unexpectedly, Generation Capital 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 Generation Capital will offset losses from the drop in Generation Capital's long position.| Silver Castle vs. Generation Capital | Silver Castle vs. Meitav Dash Investments | Silver Castle vs. IBI Inv House | Silver Castle vs. Mivtach Shamir |
| Generation Capital vs. EN Shoham Business | Generation Capital vs. Mivtach Shamir | Generation Capital vs. Enlight Renewable Energy | Generation Capital vs. Rani Zim Shopping |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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