Correlation Between Moonpig Group and Silver Bullet

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

By analyzing existing cross correlation between Moonpig Group PLC and Silver Bullet Data, you can compare the effects of market volatilities on Moonpig Group and Silver Bullet 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 Moonpig Group with a short position of Silver Bullet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moonpig Group and Silver Bullet.

Diversification Opportunities for Moonpig Group and Silver Bullet

0.37

Correlation Coefficient

Moonpig Group  Silver Bullet

Weak diversification

The 3 months correlation between Moonpig and Silver is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Moonpig Group PLC and Silver Bullet Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bullet Data and Moonpig Group 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 Moonpig Group PLC are associated (or correlated) with Silver Bullet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bullet Data has no effect on the direction of Moonpig Group i.e., Moonpig Group and Silver Bullet go up and down completely randomly.

Pair Corralation between Moonpig Group and Silver Bullet

Assuming the 90 days trading horizon Moonpig Group PLC is expected to generate 0.87 times more return on investment than Silver Bullet. However, Moonpig Group PLC is 1.15 times less risky than Silver Bullet. It trades about -0.03 of its potential returns per unit of risk. Silver Bullet Data is currently generating about -0.41 per unit of risk. If you would invest  21,007  in Moonpig Group PLC on December 25, 2024 and sell it today you would lose (1,007) from holding Moonpig Group PLC or give up 4.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Moonpig Group PLC  vs.  Silver Bullet Data

Moonpig Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moonpig Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Moonpig Group is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Silver Bullet Data

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silver Bullet Data has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady 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 Moonpig Group and Silver Bullet

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

The idea behind Moonpig Group PLC and Silver Bullet Data 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 CEOs Directory module to screen CEOs from public companies around the world.