Correlation Between Silvercorp Metals and Bioventix

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

By analyzing existing cross correlation between Silvercorp Metals and Bioventix, you can compare the effects of market volatilities on Silvercorp Metals and Bioventix 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 Silvercorp Metals with a short position of Bioventix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and Bioventix.

Diversification Opportunities for Silvercorp Metals and Bioventix

-0.89

Correlation Coefficient

Silvercorp Metals  Bioventix

Pay attention - limited upside

The 3 months correlation between Silvercorp and Bioventix is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals and Bioventix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventix and Silvercorp Metals 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 Silvercorp Metals are associated (or correlated) with Bioventix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventix has no effect on the direction of Silvercorp Metals i.e., Silvercorp Metals and Bioventix go up and down completely randomly.

Pair Corralation between Silvercorp Metals and Bioventix

Assuming the 90 days trading horizon Silvercorp Metals is expected to generate 1.3 times more return on investment than Bioventix. However, Silvercorp Metals is 1.3 times more volatile than Bioventix. It trades about 0.2 of its potential returns per unit of risk. Bioventix is currently generating about -0.14 per unit of risk. If you would invest  429.00  in Silvercorp Metals on December 26, 2024 and sell it today you would earn a total of  146.00  from holding Silvercorp Metals or generate 34.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Silvercorp Metals  vs.  Bioventix

Silvercorp Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Silvercorp Metals are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Silvercorp Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bioventix

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bioventix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Silvercorp Metals and Bioventix

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

The idea behind Silvercorp Metals and Bioventix 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.