Correlation Between 3M India and Aster DM
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By analyzing existing cross correlation between 3M India Limited and Aster DM Healthcare, you can compare the effects of market volatilities on 3M India and Aster DM 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 3M India with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M India and Aster DM.
Diversification Opportunities for 3M India and Aster DM
Very good diversification
The 3 months correlation between 3MINDIA and Aster is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding 3M India Limited and Aster DM Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aster DM Healthcare and 3M India 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 3M India Limited are associated (or correlated) with Aster DM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aster DM Healthcare has no effect on the direction of 3M India i.e., 3M India and Aster DM go up and down completely randomly.
Pair Corralation between 3M India and Aster DM
Assuming the 90 days trading horizon 3M India Limited is expected to under-perform the Aster DM. But the stock apears to be less risky and, when comparing its historical volatility, 3M India Limited is 1.19 times less risky than Aster DM. The stock trades about -0.29 of its potential returns per unit of risk. The Aster DM Healthcare is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 44,490 in Aster DM Healthcare on September 2, 2024 and sell it today you would earn a total of 5,505 from holding Aster DM Healthcare or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
3M India Limited vs. Aster DM Healthcare
Performance |
| Timeline |
| 3M India Limited |
| Aster DM Healthcare |
3M India and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M India and Aster DM
The main advantage of trading using opposite 3M India and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M India position performs unexpectedly, Aster DM 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 Aster DM will offset losses from the drop in Aster DM's long position.| 3M India vs. Reliance Industries Limited | 3M India vs. Oil Natural Gas | 3M India vs. ICICI Bank Limited | 3M India vs. Bharti Airtel Limited |
| Aster DM vs. State Bank of | Aster DM vs. Life Insurance | Aster DM vs. HDFC Bank Limited | Aster DM vs. ICICI Bank Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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