Correlation Between Bharatiya Global and Silly Monks

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

By analyzing existing cross correlation between Bharatiya Global Infomedia and Silly Monks Entertainment, you can compare the effects of market volatilities on Bharatiya Global and Silly Monks 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 Bharatiya Global with a short position of Silly Monks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bharatiya Global and Silly Monks.

Diversification Opportunities for Bharatiya Global and Silly Monks

0.59

Correlation Coefficient

Bharatiya Global  Silly Monks

Very weak diversification

The 3 months correlation between Bharatiya and Silly is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bharatiya Global Infomedia and Silly Monks Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silly Monks Entertainment and Bharatiya Global 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 Bharatiya Global Infomedia are associated (or correlated) with Silly Monks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silly Monks Entertainment has no effect on the direction of Bharatiya Global i.e., Bharatiya Global and Silly Monks go up and down completely randomly.

Pair Corralation between Bharatiya Global and Silly Monks

Assuming the 90 days trading horizon Bharatiya Global Infomedia is expected to under-perform the Silly Monks. But the stock apears to be less risky and, when comparing its historical volatility, Bharatiya Global Infomedia is 1.78 times less risky than Silly Monks. The stock trades about -0.02 of its potential returns per unit of risk. The Silly Monks Entertainment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,640  in Silly Monks Entertainment on December 2, 2024 and sell it today you would earn a total of  130.00  from holding Silly Monks Entertainment or generate 7.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.59%
Values	Daily Returns

Bharatiya Global Infomedia  vs.  Silly Monks Entertainment

Bharatiya Global Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bharatiya Global Infomedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Bharatiya Global is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Silly Monks Entertainment

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Bharatiya Global and Silly Monks

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

The idea behind Bharatiya Global Infomedia and Silly Monks Entertainment 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.