Correlation Between Silver Spike and Creative Edge
Can any of the company-specific risk be diversified away by investing in both Silver Spike and Creative Edge 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 Spike and Creative Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Spike Investment and Creative Edge Nutrit, you can compare the effects of market volatilities on Silver Spike and Creative Edge 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 Spike with a short position of Creative Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Spike and Creative Edge.
Diversification Opportunities for Silver Spike and Creative Edge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silver and Creative is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silver Spike Investment and Creative Edge Nutrit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Edge Nutrit and Silver Spike 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 Spike Investment are associated (or correlated) with Creative Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Edge Nutrit has no effect on the direction of Silver Spike i.e., Silver Spike and Creative Edge go up and down completely randomly.
Pair Corralation between Silver Spike and Creative Edge
Given the investment horizon of 90 days Silver Spike Investment is expected to generate 0.45 times more return on investment than Creative Edge. However, Silver Spike Investment is 2.23 times less risky than Creative Edge. It trades about 0.06 of its potential returns per unit of risk. Creative Edge Nutrit is currently generating about -0.04 per unit of risk. If you would invest 835.00 in Silver Spike Investment on August 30, 2024 and sell it today you would earn a total of 453.00 from holding Silver Spike Investment or generate 54.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.75% |
| Values | Daily Returns |
Silver Spike Investment vs. Creative Edge Nutrit
Performance |
| Timeline |
| Silver Spike Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Creative Edge Nutrit |
Silver Spike and Creative Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Spike and Creative Edge
The main advantage of trading using opposite Silver Spike and Creative Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Spike position performs unexpectedly, Creative Edge 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 Creative Edge will offset losses from the drop in Creative Edge's long position.| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
| Creative Edge vs. Benchmark Botanics | Creative Edge vs. Speakeasy Cannabis Club | Creative Edge vs. City View Green | Creative Edge vs. BC Craft Supply |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |