Correlation Between Agarwal Industrial and Hisar Metal
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By analyzing existing cross correlation between Agarwal Industrial and Hisar Metal Industries, you can compare the effects of market volatilities on Agarwal Industrial and Hisar Metal 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 Agarwal Industrial with a short position of Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agarwal Industrial and Hisar Metal.
Diversification Opportunities for Agarwal Industrial and Hisar Metal
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agarwal and Hisar is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agarwal Industrial and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries and Agarwal Industrial 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 Agarwal Industrial are associated (or correlated) with Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of Agarwal Industrial i.e., Agarwal Industrial and Hisar Metal go up and down completely randomly.
Pair Corralation between Agarwal Industrial and Hisar Metal
Assuming the 90 days trading horizon Agarwal Industrial is expected to generate 1.08 times more return on investment than Hisar Metal. However, Agarwal Industrial is 1.08 times more volatile than Hisar Metal Industries. It trades about 0.08 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about -0.16 per unit of risk. If you would invest 101,380 in Agarwal Industrial on August 29, 2024 and sell it today you would earn a total of 3,330 from holding Agarwal Industrial or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agarwal Industrial vs. Hisar Metal Industries
Performance |
| Timeline |
| Agarwal Industrial |
| Hisar Metal Industries |
Agarwal Industrial and Hisar Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agarwal Industrial and Hisar Metal
The main advantage of trading using opposite Agarwal Industrial and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agarwal Industrial position performs unexpectedly, Hisar Metal 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.| Agarwal Industrial vs. Elin Electronics Limited | Agarwal Industrial vs. Newgen Software Technologies | Agarwal Industrial vs. R S Software | Agarwal Industrial vs. Salzer Electronics Limited |
| Hisar Metal vs. Embassy Office Parks | Hisar Metal vs. Gujarat Narmada Valley | Hisar Metal vs. Gujarat Alkalies and | Hisar Metal 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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