Correlation Between Silgo Retail and Radaan Mediaworks

Can any of the company-specific risk be diversified away by investing in both Silgo Retail and Radaan Mediaworks 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 Silgo Retail and Radaan Mediaworks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Silgo Retail Limited and Radaan Mediaworks India, you can compare the effects of market volatilities on Silgo Retail and Radaan Mediaworks 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 Silgo Retail with a short position of Radaan Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgo Retail and Radaan Mediaworks.

Diversification Opportunities for Silgo Retail and Radaan Mediaworks

-0.6

Correlation Coefficient

Silgo Retail  Radaan Mediaworks

Excellent diversification

The 3 months correlation between Silgo and Radaan is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Silgo Retail Limited and Radaan Mediaworks India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radaan Mediaworks India and Silgo Retail 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 Silgo Retail Limited are associated (or correlated) with Radaan Mediaworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radaan Mediaworks India has no effect on the direction of Silgo Retail i.e., Silgo Retail and Radaan Mediaworks go up and down completely randomly.

Pair Corralation between Silgo Retail and Radaan Mediaworks

Assuming the 90 days trading horizon Silgo Retail is expected to generate 37.15 times less return on investment than Radaan Mediaworks. In addition to that, Silgo Retail is 5.36 times more volatile than Radaan Mediaworks India. It trades about 0.02 of its total potential returns per unit of risk. Radaan Mediaworks India is currently generating about 2.99 per unit of volatility. If you would invest  472.00  in Radaan Mediaworks India on September 24, 2024 and sell it today you would earn a total of  202.00  from holding Radaan Mediaworks India or generate 42.8% return on investment over 90 days.

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

Silgo Retail Limited  vs.  Radaan Mediaworks India

Silgo Retail Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silgo Retail Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Radaan Mediaworks India

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Radaan Mediaworks India are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Radaan Mediaworks sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silgo Retail and Radaan Mediaworks

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

The idea behind Silgo Retail Limited and Radaan Mediaworks India 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.