Correlation Between Ankit Metal and Agro Tech
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By analyzing existing cross correlation between Ankit Metal Power and Agro Tech Foods, you can compare the effects of market volatilities on Ankit Metal and Agro Tech 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 Ankit Metal with a short position of Agro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankit Metal and Agro Tech.
Diversification Opportunities for Ankit Metal and Agro Tech
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ankit and Agro is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ankit Metal Power and Agro Tech Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Tech Foods and Ankit Metal 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 Ankit Metal Power are associated (or correlated) with Agro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Tech Foods has no effect on the direction of Ankit Metal i.e., Ankit Metal and Agro Tech go up and down completely randomly.
Pair Corralation between Ankit Metal and Agro Tech
Assuming the 90 days trading horizon Ankit Metal Power is expected to under-perform the Agro Tech. But the stock apears to be less risky and, when comparing its historical volatility, Ankit Metal Power is 1.12 times less risky than Agro Tech. The stock trades about -0.08 of its potential returns per unit of risk. The Agro Tech Foods is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 83,206 in Agro Tech Foods on September 4, 2024 and sell it today you would earn a total of 12,464 from holding Agro Tech Foods or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ankit Metal Power vs. Agro Tech Foods
Performance |
| Timeline |
| Ankit Metal Power |
| Agro Tech Foods |
Ankit Metal and Agro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ankit Metal and Agro Tech
The main advantage of trading using opposite Ankit Metal and Agro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankit Metal position performs unexpectedly, Agro Tech 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 Agro Tech will offset losses from the drop in Agro Tech's long position.| Ankit Metal vs. NMDC Limited | Ankit Metal vs. Steel Authority of | Ankit Metal vs. Embassy Office Parks | Ankit Metal vs. Gujarat Narmada Valley |
| Agro Tech vs. Reliance Industries Limited | Agro Tech vs. HDFC Bank Limited | Agro Tech vs. Kingfa Science Technology | Agro Tech vs. Rico Auto 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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