Correlation Between Kuya Silver and Radcom

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

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

Diversification Opportunities for Kuya Silver and Radcom

-0.15

Correlation Coefficient

Kuya Silver  Radcom

Good diversification

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

Pair Corralation between Kuya Silver and Radcom

Assuming the 90 days horizon Kuya Silver is expected to generate 1.91 times more return on investment than Radcom. However, Kuya Silver is 1.91 times more volatile than Radcom. It trades about 0.12 of its potential returns per unit of risk. Radcom is currently generating about 0.2 per unit of risk. If you would invest  20.00  in Kuya Silver on March 4, 2025 and sell it today you would earn a total of  2.00  from holding Kuya Silver or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Kuya Silver  vs.  Radcom

Kuya Silver

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kuya Silver has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kuya Silver is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Radcom

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Radcom displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kuya Silver and Radcom

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

The idea behind Kuya Silver and Radcom 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .