Correlation Between Silgo Retail and Hisar Metal

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Can any of the company-specific risk be diversified away by investing in both Silgo Retail and Hisar Metal 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 Hisar Metal 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 Hisar Metal Industries, you can compare the effects of market volatilities on Silgo Retail and Hisar Metal 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 Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgo Retail and Hisar Metal.

Diversification Opportunities for Silgo Retail and Hisar Metal

SilgoHisarDiversified AwaySilgoHisarDiversified Away100%
-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Silgo and Hisar is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Silgo Retail Limited and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries 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 Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of Silgo Retail i.e., Silgo Retail and Hisar Metal go up and down completely randomly.

Pair Corralation between Silgo Retail and Hisar Metal

Assuming the 90 days trading horizon Silgo Retail Limited is expected to under-perform the Hisar Metal. In addition to that, Silgo Retail is 1.1 times more volatile than Hisar Metal Industries. It trades about -0.17 of its total potential returns per unit of risk. Hisar Metal Industries is currently generating about 0.08 per unit of volatility. If you would invest  18,836  in Hisar Metal Industries on October 21, 2024 and sell it today you would earn a total of  2,448  from holding Hisar Metal Industries or generate 13.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Silgo Retail Limited  vs.  Hisar Metal Industries

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-10010
JavaScript chart by amCharts 3.21.15SILGO HISARMETAL
       Timeline  
Silgo Retail Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 unfluctuating performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3436384042444648
Hisar Metal Industries 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Hisar Metal Industries are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Hisar Metal exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan160170180190200210220230240

Silgo Retail and Hisar Metal Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.17-4.62-3.07-1.520.02311.382.774.155.54 0.0250.0300.0350.0400.0450.050
JavaScript chart by amCharts 3.21.15SILGO HISARMETAL
       Returns  

Pair Trading with Silgo Retail and Hisar Metal

The main advantage of trading using opposite Silgo Retail and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgo Retail position performs unexpectedly, Hisar Metal 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.
The idea behind Silgo Retail Limited and Hisar Metal Industries 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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