Correlation Between Silver Spike and TILT Holdings
Can any of the company-specific risk be diversified away by investing in both Silver Spike and TILT Holdings 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 TILT Holdings 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 TILT Holdings, you can compare the effects of market volatilities on Silver Spike and TILT Holdings 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 TILT Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Spike and TILT Holdings.
Diversification Opportunities for Silver Spike and TILT Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silver and TILT is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Silver Spike Investment and TILT Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TILT Holdings 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 TILT Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TILT Holdings has no effect on the direction of Silver Spike i.e., Silver Spike and TILT Holdings go up and down completely randomly.
Pair Corralation between Silver Spike and TILT Holdings
Given the investment horizon of 90 days Silver Spike Investment is expected to generate 0.19 times more return on investment than TILT Holdings. However, Silver Spike Investment is 5.27 times less risky than TILT Holdings. It trades about 0.24 of its potential returns per unit of risk. TILT Holdings is currently generating about -0.09 per unit of risk. If you would invest 1,115 in Silver Spike Investment on September 2, 2024 and sell it today you would earn a total of 181.00 from holding Silver Spike Investment or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.25% |
| Values | Daily Returns |
Silver Spike Investment vs. TILT Holdings
Performance |
| Timeline |
| Silver Spike Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| TILT Holdings |
Silver Spike and TILT Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Spike and TILT Holdings
The main advantage of trading using opposite Silver Spike and TILT Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Spike position performs unexpectedly, TILT Holdings 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 TILT Holdings will offset losses from the drop in TILT Holdings' long position.| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
| TILT Holdings vs. Holloman Energy Corp | TILT Holdings vs. cbdMD Inc | TILT Holdings vs. Evolus Inc | TILT Holdings vs. CV Sciences |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |