Correlation Between Akme Fintrade and Sukhjit Starch
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By analyzing existing cross correlation between Akme Fintrade India and Sukhjit Starch Chemicals, you can compare the effects of market volatilities on Akme Fintrade and Sukhjit Starch 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 Akme Fintrade with a short position of Sukhjit Starch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akme Fintrade and Sukhjit Starch.
Diversification Opportunities for Akme Fintrade and Sukhjit Starch
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akme and Sukhjit is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Akme Fintrade India and Sukhjit Starch Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sukhjit Starch Chemicals and Akme Fintrade 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 Akme Fintrade India are associated (or correlated) with Sukhjit Starch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sukhjit Starch Chemicals has no effect on the direction of Akme Fintrade i.e., Akme Fintrade and Sukhjit Starch go up and down completely randomly.
Pair Corralation between Akme Fintrade and Sukhjit Starch
Assuming the 90 days trading horizon Akme Fintrade India is expected to under-perform the Sukhjit Starch. But the stock apears to be less risky and, when comparing its historical volatility, Akme Fintrade India is 1.54 times less risky than Sukhjit Starch. The stock trades about -0.55 of its potential returns per unit of risk. The Sukhjit Starch Chemicals is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 25,314 in Sukhjit Starch Chemicals on September 3, 2024 and sell it today you would earn a total of 1,554 from holding Sukhjit Starch Chemicals or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Akme Fintrade India vs. Sukhjit Starch Chemicals
Performance |
| Timeline |
| Akme Fintrade India |
| Sukhjit Starch Chemicals |
Akme Fintrade and Sukhjit Starch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akme Fintrade and Sukhjit Starch
The main advantage of trading using opposite Akme Fintrade and Sukhjit Starch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akme Fintrade position performs unexpectedly, Sukhjit Starch 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 Sukhjit Starch will offset losses from the drop in Sukhjit Starch's long position.| Akme Fintrade vs. Cholamandalam Investment and | Akme Fintrade vs. Shipping | Akme Fintrade vs. Indo Borax Chemicals | Akme Fintrade vs. Kingfa Science Technology |
| Sukhjit Starch vs. NMDC Limited | Sukhjit Starch vs. Steel Authority of | Sukhjit Starch vs. Indian Metals Ferro | Sukhjit Starch vs. JTL Industries |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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