Correlation Between S P and Silgo Retail

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

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

Diversification Opportunities for S P and Silgo Retail

-0.27

Correlation Coefficient

S P  Silgo Retail

Very good diversification

The 3 months correlation between SPAL and Silgo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding S P Apparels 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 S P 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 S P Apparels 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 S P i.e., S P and Silgo Retail go up and down completely randomly.

Pair Corralation between S P and Silgo Retail

Assuming the 90 days trading horizon S P Apparels is expected to under-perform the Silgo Retail. In addition to that, S P is 1.27 times more volatile than Silgo Retail Limited. It trades about -0.02 of its total potential returns per unit of risk. Silgo Retail Limited is currently generating about 0.06 per unit of volatility. If you would invest  5,078  in Silgo Retail Limited on May 14, 2025 and sell it today you would earn a total of  348.00  from holding Silgo Retail Limited or generate 6.85% return on investment over 90 days.

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

S P Apparels  vs.  Silgo Retail Limited

S P Apparels

Risk-Adjusted Performance

Weakest

Over the last 90 days S P Apparels has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, S P is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Silgo Retail Limited

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Silgo Retail Limited are ranked lower than 4 (%) 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 S P and Silgo Retail

The main advantage of trading using opposite S P and Silgo Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S P 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 S P Apparels 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.