Correlation Between Xiabuxiabu Catering and Silvercrest Asset

Can any of the company-specific risk be diversified away by investing in both Xiabuxiabu Catering and Silvercrest Asset 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 Xiabuxiabu Catering and Silvercrest Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Xiabuxiabu Catering Management and Silvercrest Asset Management, you can compare the effects of market volatilities on Xiabuxiabu Catering and Silvercrest Asset 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 Xiabuxiabu Catering with a short position of Silvercrest Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiabuxiabu Catering and Silvercrest Asset.

Diversification Opportunities for Xiabuxiabu Catering and Silvercrest Asset

0.15

Correlation Coefficient

Xiabuxiabu Catering  Silvercrest Asset

Average diversification

The 3 months correlation between Xiabuxiabu and Silvercrest is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management and Silvercrest Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercrest Asset and Xiabuxiabu Catering 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 Xiabuxiabu Catering Management are associated (or correlated) with Silvercrest Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercrest Asset has no effect on the direction of Xiabuxiabu Catering i.e., Xiabuxiabu Catering and Silvercrest Asset go up and down completely randomly.

Pair Corralation between Xiabuxiabu Catering and Silvercrest Asset

Assuming the 90 days horizon Xiabuxiabu Catering Management is expected to under-perform the Silvercrest Asset. In addition to that, Xiabuxiabu Catering is 1.27 times more volatile than Silvercrest Asset Management. It trades about -0.13 of its total potential returns per unit of risk. Silvercrest Asset Management is currently generating about -0.15 per unit of volatility. If you would invest  1,840  in Silvercrest Asset Management on December 26, 2024 and sell it today you would lose (230.00) from holding Silvercrest Asset Management or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Xiabuxiabu Catering Management  vs.  Silvercrest Asset Management

Xiabuxiabu Catering

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady 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.

Silvercrest Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silvercrest Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary 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 Xiabuxiabu Catering and Silvercrest Asset

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

The idea behind Xiabuxiabu Catering Management and Silvercrest Asset Management 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.

Check out your portfolio center.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.