Correlation Between Bet At and Silvercorp Metals

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

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

Diversification Opportunities for Bet At and Silvercorp Metals

0.05

Correlation Coefficient

Bet At  Silvercorp Metals

Significant diversification

The 3 months correlation between Bet and Silvercorp is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals and Bet At 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 bet at home AG are associated (or correlated) with Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Bet At i.e., Bet At and Silvercorp Metals go up and down completely randomly.

Pair Corralation between Bet At and Silvercorp Metals

Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Silvercorp Metals. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.25 times less risky than Silvercorp Metals. The stock trades about -0.03 of its potential returns per unit of risk. The Silvercorp Metals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  432.00  in Silvercorp Metals on December 1, 2024 and sell it today you would earn a total of  106.00  from holding Silvercorp Metals or generate 24.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	45.18%
Values	Daily Returns

bet at home AG  vs.  Silvercorp Metals

bet at home

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in bet at home AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bet At may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Silvercorp Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Silvercorp Metals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Silvercorp Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bet At and Silvercorp Metals

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

The idea behind bet at home AG and Silvercorp Metals 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .