Correlation Between IShares Silver and Sykes Enterprises

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

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

Diversification Opportunities for IShares Silver and Sykes Enterprises

0.0

Correlation Coefficient

IShares Silver  Sykes Enterprises

Pay attention - limited upside

The 3 months correlation between IShares and Sykes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Silver Trust and Sykes Enterprises Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sykes Enterprises and IShares 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 iShares Silver Trust are associated (or correlated) with Sykes Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sykes Enterprises has no effect on the direction of IShares Silver i.e., IShares Silver and Sykes Enterprises go up and down completely randomly.

Pair Corralation between IShares Silver and Sykes Enterprises

If you would invest  2,099  in iShares Silver Trust on February 23, 2024 and sell it today you would earn a total of  723.00  from holding iShares Silver Trust or generate 34.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

iShares Silver Trust  vs.  Sykes Enterprises Incorporated

iShares Silver Trust

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Silver Trust are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady essential indicators, IShares Silver showed solid returns over the last few months and may actually be approaching a breakup point.

Sykes Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sykes Enterprises Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Sykes Enterprises is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IShares Silver and Sykes Enterprises

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

The idea behind iShares Silver Trust and Sykes Enterprises Incorporated 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.