Correlation Between SilverBox Corp and Hurco Companies

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

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

Diversification Opportunities for SilverBox Corp and Hurco Companies

-0.13

Correlation Coefficient

SilverBox Corp  Hurco Companies

Good diversification

The 3 months correlation between SilverBox and Hurco is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding SilverBox Corp IV and Hurco Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurco Companies and SilverBox Corp 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 SilverBox Corp IV are associated (or correlated) with Hurco Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurco Companies has no effect on the direction of SilverBox Corp i.e., SilverBox Corp and Hurco Companies go up and down completely randomly.

Pair Corralation between SilverBox Corp and Hurco Companies

Given the investment horizon of 90 days SilverBox Corp IV is expected to under-perform the Hurco Companies. But the stock apears to be less risky and, when comparing its historical volatility, SilverBox Corp IV is 1.31 times less risky than Hurco Companies. The stock trades about -0.12 of its potential returns per unit of risk. The Hurco Companies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,543  in Hurco Companies on September 22, 2024 and sell it today you would lose (623.00) from holding Hurco Companies or give up 24.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	11.29%
Values	Daily Returns

SilverBox Corp IV  vs.  Hurco Companies

SilverBox Corp IV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SilverBox Corp IV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, SilverBox Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Hurco Companies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hurco Companies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hurco Companies is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SilverBox Corp and Hurco Companies

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

The idea behind SilverBox Corp IV and Hurco Companies 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.