Correlation Between CaliberCos and Silvercrest Asset

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

By analyzing existing cross correlation between CaliberCos Class A and Silvercrest Asset Management, you can compare the effects of market volatilities on CaliberCos and Silvercrest Asset 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 CaliberCos with a short position of Silvercrest Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CaliberCos and Silvercrest Asset.

Diversification Opportunities for CaliberCos and Silvercrest Asset

0.15

Correlation Coefficient

CaliberCos  Silvercrest Asset

Average diversification

The 3 months correlation between CaliberCos and Silvercrest is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CaliberCos Class A and Silvercrest Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercrest Asset and CaliberCos 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 CaliberCos Class A are associated (or correlated) with Silvercrest Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercrest Asset has no effect on the direction of CaliberCos i.e., CaliberCos and Silvercrest Asset go up and down completely randomly.

Pair Corralation between CaliberCos and Silvercrest Asset

Considering the 90-day investment horizon CaliberCos Class A is expected to under-perform the Silvercrest Asset. In addition to that, CaliberCos is 2.73 times more volatile than Silvercrest Asset Management. It trades about -0.05 of its total potential returns per unit of risk. Silvercrest Asset Management is currently generating about -0.13 per unit of volatility. If you would invest  1,842  in Silvercrest Asset Management on December 11, 2024 and sell it today you would lose (83.00) from holding Silvercrest Asset Management or give up 4.51% of portfolio value over 90 days.

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

CaliberCos Class A  vs.  Silvercrest Asset Management

CaliberCos Class A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CaliberCos Class A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CaliberCos exhibited solid returns over the last few months and may actually be approaching a breakup point.

Silvercrest Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silvercrest Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Silvercrest Asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CaliberCos and Silvercrest Asset

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

The idea behind CaliberCos Class A and Silvercrest Asset Management 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.