Correlation Between Silver Castle and Retailors
Can any of the company-specific risk be diversified away by investing in both Silver Castle and Retailors 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 Retailors 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 Retailors, you can compare the effects of market volatilities on Silver Castle and Retailors 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 Retailors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Castle and Retailors.
Diversification Opportunities for Silver Castle and Retailors
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silver and Retailors is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Silver Castle Holdings and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors 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 Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of Silver Castle i.e., Silver Castle and Retailors go up and down completely randomly.
Pair Corralation between Silver Castle and Retailors
Assuming the 90 days trading horizon Silver Castle Holdings is expected to generate 1.07 times more return on investment than Retailors. However, Silver Castle is 1.07 times more volatile than Retailors. It trades about 0.24 of its potential returns per unit of risk. Retailors is currently generating about 0.23 per unit of risk. If you would invest 51,550 in Silver Castle Holdings on August 28, 2024 and sell it today you would earn a total of 7,490 from holding Silver Castle Holdings or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Castle Holdings vs. Retailors
Performance |
| Timeline |
| Silver Castle Holdings |
| Retailors |
Silver Castle and Retailors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Castle and Retailors
The main advantage of trading using opposite Silver Castle and Retailors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Castle position performs unexpectedly, Retailors 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 Retailors will offset losses from the drop in Retailors' 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 |
| Retailors vs. Nice | Retailors vs. The Gold Bond | Retailors vs. Bank Leumi Le Israel | Retailors vs. ICL Israel Chemicals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |