Correlation Between Castellum and Silicom
Can any of the company-specific risk be diversified away by investing in both Castellum and Silicom 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 Castellum and Silicom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and Silicom, you can compare the effects of market volatilities on Castellum and Silicom 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 Castellum with a short position of Silicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Silicom.
Diversification Opportunities for Castellum and Silicom
Good diversification
The 3 months correlation between Castellum and Silicom is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Silicom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicom and Castellum 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 Castellum are associated (or correlated) with Silicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicom has no effect on the direction of Castellum i.e., Castellum and Silicom go up and down completely randomly.
Pair Corralation between Castellum and Silicom
Considering the 90-day investment horizon Castellum is expected to under-perform the Silicom. In addition to that, Castellum is 1.48 times more volatile than Silicom. It trades about -0.01 of its total potential returns per unit of risk. Silicom is currently generating about -0.01 per unit of volatility. If you would invest 1,616 in Silicom on September 2, 2025 and sell it today you would lose (93.50) from holding Silicom or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum vs. Silicom
Performance |
| Timeline |
| Castellum |
| Silicom |
Castellum and Silicom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and Silicom
The main advantage of trading using opposite Castellum and Silicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, Silicom 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 Silicom will offset losses from the drop in Silicom's long position.| Castellum vs. Konoike Transport CoLtd | Castellum vs. Motorcar Parts of | Castellum vs. Nexstar Broadcasting Group | Castellum vs. Essential Utilities |
| Silicom vs. Juma Technology Corp | Silicom vs. Marti Technologies | Silicom vs. Sunlands Technology Group | Silicom vs. Casio Computer Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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