Correlation Between Refex Industries and Silgo Retail

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

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

Diversification Opportunities for Refex Industries and Silgo Retail

0.0

Correlation Coefficient

Refex Industries  Silgo Retail

Pay attention - limited upside

The 3 months correlation between Refex and Silgo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited 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 Refex Industries 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 Refex Industries Limited 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 Refex Industries i.e., Refex Industries and Silgo Retail go up and down completely randomly.

Pair Corralation between Refex Industries and Silgo Retail

Assuming the 90 days trading horizon Refex Industries is expected to generate 1.59 times less return on investment than Silgo Retail. In addition to that, Refex Industries is 1.31 times more volatile than Silgo Retail Limited. It trades about 0.04 of its total potential returns per unit of risk. Silgo Retail Limited is currently generating about 0.08 per unit of volatility. If you would invest  5,103  in Silgo Retail Limited on May 10, 2025 and sell it today you would earn a total of  494.00  from holding Silgo Retail Limited or generate 9.68% return on investment over 90 days.

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

Refex Industries Limited  vs.  Silgo Retail Limited

Refex Industries

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Refex Industries Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Refex Industries may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Silgo Retail Limited

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Silgo Retail Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Silgo Retail may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Refex Industries and Silgo Retail

The main advantage of trading using opposite Refex Industries and Silgo Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries 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 Refex Industries Limited 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.