Correlation Between Silver Castle and Photomyne
Can any of the company-specific risk be diversified away by investing in both Silver Castle and Photomyne 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 Photomyne 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 Photomyne, you can compare the effects of market volatilities on Silver Castle and Photomyne 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 Photomyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Castle and Photomyne.
Diversification Opportunities for Silver Castle and Photomyne
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silver and Photomyne is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Silver Castle Holdings and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne 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 Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of Silver Castle i.e., Silver Castle and Photomyne go up and down completely randomly.
Pair Corralation between Silver Castle and Photomyne
Assuming the 90 days trading horizon Silver Castle Holdings is expected to generate 15.42 times more return on investment than Photomyne. However, Silver Castle is 15.42 times more volatile than Photomyne. It trades about 0.05 of its potential returns per unit of risk. Photomyne is currently generating about 0.06 per unit of risk. If you would invest 107,900 in Silver Castle Holdings on August 27, 2024 and sell it today you would lose (47,450) from holding Silver Castle Holdings or give up 43.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Castle Holdings vs. Photomyne
Performance |
| Timeline |
| Silver Castle Holdings |
| Photomyne |
Silver Castle and Photomyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Castle and Photomyne
The main advantage of trading using opposite Silver Castle and Photomyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Castle position performs unexpectedly, Photomyne 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 Photomyne will offset losses from the drop in Photomyne's long position.| Silver Castle vs. Abra Information Technologies | Silver Castle vs. Dan Hotels | Silver Castle vs. Shagrir Group Vehicle | Silver Castle vs. Multi Retail Group |
| Photomyne vs. Elbit Medical Technologies | Photomyne vs. Skyline Investments | Photomyne vs. Migdal Insurance | Photomyne vs. Harel Insurance Investments |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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