Correlation Between ADF Foods and Max Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between ADF Foods Limited and Max Financial Services, you can compare the effects of market volatilities on ADF Foods and Max Financial 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 ADF Foods with a short position of Max Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADF Foods and Max Financial.
Diversification Opportunities for ADF Foods and Max Financial
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ADF and Max is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ADF Foods Limited and Max Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Max Financial Services and ADF Foods 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 ADF Foods Limited are associated (or correlated) with Max Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Max Financial Services has no effect on the direction of ADF Foods i.e., ADF Foods and Max Financial go up and down completely randomly.
Pair Corralation between ADF Foods and Max Financial
Assuming the 90 days trading horizon ADF Foods Limited is expected to generate 1.85 times more return on investment than Max Financial. However, ADF Foods is 1.85 times more volatile than Max Financial Services. It trades about 0.07 of its potential returns per unit of risk. Max Financial Services is currently generating about 0.01 per unit of risk. If you would invest 28,957 in ADF Foods Limited on September 12, 2024 and sell it today you would earn a total of 3,573 from holding ADF Foods Limited or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
ADF Foods Limited vs. Max Financial Services
Performance |
| Timeline |
| ADF Foods Limited |
| Max Financial Services |
ADF Foods and Max Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADF Foods and Max Financial
The main advantage of trading using opposite ADF Foods and Max Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADF Foods position performs unexpectedly, Max Financial 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 Max Financial will offset losses from the drop in Max Financial's long position.| ADF Foods vs. State Bank of | ADF Foods vs. Life Insurance | ADF Foods vs. HDFC Bank Limited | ADF Foods vs. ICICI Bank Limited |
| Max Financial vs. Vodafone Idea Limited | Max Financial vs. Yes Bank Limited | Max Financial vs. Indian Overseas Bank | Max Financial vs. Indian Oil |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |