Correlation Between Silergy Corp and All Cosmos

Can any of the company-specific risk be diversified away by investing in both Silergy Corp and All Cosmos 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 Silergy Corp and All Cosmos into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Silergy Corp and All Cosmos Bio Tech, you can compare the effects of market volatilities on Silergy Corp and All Cosmos 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 Silergy Corp with a short position of All Cosmos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and All Cosmos.

Diversification Opportunities for Silergy Corp and All Cosmos

-0.27

Correlation Coefficient

Silergy Corp  All Cosmos

Very good diversification

The 3 months correlation between Silergy and All is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and All Cosmos Bio Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Cosmos Bio and Silergy Corp 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 Silergy Corp are associated (or correlated) with All Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Cosmos Bio has no effect on the direction of Silergy Corp i.e., Silergy Corp and All Cosmos go up and down completely randomly.

Pair Corralation between Silergy Corp and All Cosmos

Assuming the 90 days trading horizon Silergy Corp is expected to generate 2.94 times more return on investment than All Cosmos. However, Silergy Corp is 2.94 times more volatile than All Cosmos Bio Tech. It trades about -0.01 of its potential returns per unit of risk. All Cosmos Bio Tech is currently generating about -0.06 per unit of risk. If you would invest  41,150  in Silergy Corp on January 28, 2024 and sell it today you would lose (2,350) from holding Silergy Corp or give up 5.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Silergy Corp  vs.  All Cosmos Bio Tech

Silergy Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silergy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Silergy Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

All Cosmos Bio

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in All Cosmos Bio Tech are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, All Cosmos may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Silergy Corp and All Cosmos

The main advantage of trading using opposite Silergy Corp and All Cosmos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, All Cosmos 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 All Cosmos will offset losses from the drop in All Cosmos' long position.

The idea behind Silergy Corp and All Cosmos Bio Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.