Correlation Between Stag Industrial and SILVER BULLET

Can any of the company-specific risk be diversified away by investing in both Stag Industrial 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 Stag Industrial and SILVER BULLET into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stag Industrial and SILVER BULLET DATA, you can compare the effects of market volatilities on Stag Industrial 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 Stag Industrial with a short position of SILVER BULLET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and SILVER BULLET.

Diversification Opportunities for Stag Industrial and SILVER BULLET

-0.45

Correlation Coefficient

Stag Industrial  SILVER BULLET

Very good diversification

The 3 months correlation between Stag and SILVER is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial 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 Stag Industrial 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 Stag Industrial 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 Stag Industrial i.e., Stag Industrial and SILVER BULLET go up and down completely randomly.

Pair Corralation between Stag Industrial and SILVER BULLET

Assuming the 90 days trading horizon Stag Industrial is expected to generate 0.37 times more return on investment than SILVER BULLET. However, Stag Industrial is 2.68 times less risky than SILVER BULLET. It trades about 0.08 of its potential returns per unit of risk. SILVER BULLET DATA is currently generating about -0.28 per unit of risk. If you would invest  3,137  in Stag Industrial on December 20, 2024 and sell it today you would earn a total of  143.00  from holding Stag Industrial or generate 4.56% return on investment over 90 days.

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

Stag Industrial  vs.  SILVER BULLET DATA

Stag Industrial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Stag Industrial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Stag Industrial is not utilizing all of its potentials. The current 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. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Stag Industrial and SILVER BULLET

The main advantage of trading using opposite Stag Industrial and SILVER BULLET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial 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 Stag Industrial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..