Correlation Between Silly Monks and Silgo Retail

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

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

Diversification Opportunities for Silly Monks and Silgo Retail

0.16

Correlation Coefficient

Silly Monks  Silgo Retail

Average diversification

The 3 months correlation between Silly and Silgo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Silly Monks Entertainment and Silgo Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgo Retail Limited and Silly Monks 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 Silly Monks Entertainment are associated (or correlated) with Silgo Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgo Retail Limited has no effect on the direction of Silly Monks i.e., Silly Monks and Silgo Retail go up and down completely randomly.

Pair Corralation between Silly Monks and Silgo Retail

Assuming the 90 days trading horizon Silly Monks is expected to generate 1.18 times less return on investment than Silgo Retail. In addition to that, Silly Monks is 1.75 times more volatile than Silgo Retail Limited. It trades about 0.07 of its total potential returns per unit of risk. Silgo Retail Limited is currently generating about 0.15 per unit of volatility. If you would invest  4,560  in Silgo Retail Limited on April 23, 2025 and sell it today you would earn a total of  901.00  from holding Silgo Retail Limited or generate 19.76% return on investment over 90 days.

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

Silly Monks Entertainment  vs.  Silgo Retail Limited

Silly Monks Entertainment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Silly Monks Entertainment are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Silly Monks displayed solid returns over the last few months and may actually be approaching a breakup point.

Silgo Retail Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Silgo Retail Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady essential indicators, Silgo Retail displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silly Monks and Silgo Retail

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

The idea behind Silly Monks Entertainment and Silgo Retail Limited 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.