Correlation Between Silgo Retail and Dev Information

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

By analyzing existing cross correlation between Silgo Retail Limited and Dev Information Technology, you can compare the effects of market volatilities on Silgo Retail and Dev Information 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 Silgo Retail with a short position of Dev Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgo Retail and Dev Information.

Diversification Opportunities for Silgo Retail and Dev Information

-0.36

Correlation Coefficient

Silgo Retail  Dev Information

Very good diversification

The 3 months correlation between Silgo and Dev is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Silgo Retail Limited and Dev Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dev Information Tech and Silgo Retail 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 Silgo Retail Limited are associated (or correlated) with Dev Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dev Information Tech has no effect on the direction of Silgo Retail i.e., Silgo Retail and Dev Information go up and down completely randomly.

Pair Corralation between Silgo Retail and Dev Information

Assuming the 90 days trading horizon Silgo Retail Limited is expected to under-perform the Dev Information. In addition to that, Silgo Retail is 1.16 times more volatile than Dev Information Technology. It trades about -0.06 of its total potential returns per unit of risk. Dev Information Technology is currently generating about 0.1 per unit of volatility. If you would invest  12,827  in Dev Information Technology on September 18, 2024 and sell it today you would earn a total of  2,786  from holding Dev Information Technology or generate 21.72% return on investment over 90 days.

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

Silgo Retail Limited  vs.  Dev Information Technology

Silgo Retail Limited

Risk-Adjusted Performance

0 of 100

Very Weak

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

Dev Information Tech

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dev Information Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Dev Information displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silgo Retail and Dev Information

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

The idea behind Silgo Retail Limited and Dev Information Technology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.