Correlation Between Ankit Metal and Coal India
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ankit Metal Power and Coal India Limited, you can compare the effects of market volatilities on Ankit Metal and Coal India 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 Coal India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankit Metal and Coal India.
Diversification Opportunities for Ankit Metal and Coal India
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ankit and Coal is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ankit Metal Power and Coal India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coal India Limited 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 Coal India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coal India Limited has no effect on the direction of Ankit Metal i.e., Ankit Metal and Coal India go up and down completely randomly.
Pair Corralation between Ankit Metal and Coal India
Assuming the 90 days trading horizon Ankit Metal Power is expected to generate 2.29 times more return on investment than Coal India. However, Ankit Metal is 2.29 times more volatile than Coal India Limited. It trades about -0.11 of its potential returns per unit of risk. Coal India Limited is currently generating about -0.3 per unit of risk. If you would invest 366.00 in Ankit Metal Power on September 1, 2024 and sell it today you would lose (26.00) from holding Ankit Metal Power or give up 7.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ankit Metal Power vs. Coal India Limited
Performance |
| Timeline |
| Ankit Metal Power |
| Coal India Limited |
Ankit Metal and Coal India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ankit Metal and Coal India
The main advantage of trading using opposite Ankit Metal and Coal India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankit Metal position performs unexpectedly, Coal India 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 Coal India will offset losses from the drop in Coal India'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 |
| Coal India vs. Indo Borax Chemicals | Coal India vs. Tata Chemicals Limited | Coal India vs. Motilal Oswal Financial | Coal India vs. Vishnu Chemicals 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |