Correlation Between Silver Touch and Cyber Media

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

By analyzing existing cross correlation between Silver Touch Technologies and Cyber Media Research, you can compare the effects of market volatilities on Silver Touch and Cyber Media 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 Silver Touch with a short position of Cyber Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Touch and Cyber Media.

Diversification Opportunities for Silver Touch and Cyber Media

0.64

Correlation Coefficient

Silver Touch  Cyber Media

Poor diversification

The 3 months correlation between Silver and Cyber is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Silver Touch Technologies and Cyber Media Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyber Media Research and Silver Touch 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 Silver Touch Technologies are associated (or correlated) with Cyber Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyber Media Research has no effect on the direction of Silver Touch i.e., Silver Touch and Cyber Media go up and down completely randomly.

Pair Corralation between Silver Touch and Cyber Media

Assuming the 90 days trading horizon Silver Touch Technologies is expected to under-perform the Cyber Media. But the stock apears to be less risky and, when comparing its historical volatility, Silver Touch Technologies is 2.42 times less risky than Cyber Media. The stock trades about -0.08 of its potential returns per unit of risk. The Cyber Media Research is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  9,945  in Cyber Media Research on October 26, 2024 and sell it today you would lose (395.00) from holding Cyber Media Research or give up 3.97% of portfolio value over 90 days.

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

Silver Touch Technologies  vs.  Cyber Media Research

Silver Touch Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silver Touch Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Cyber Media Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyber Media Research 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 basic 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.

Pair Trading with Silver Touch and Cyber Media

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

The idea behind Silver Touch Technologies and Cyber Media Research 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.