Correlation Between Automotive Stampings and Syrma SGS
Can any of the company-specific risk be diversified away by investing in both Automotive Stampings and Syrma SGS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Automotive Stampings and Syrma SGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automotive Stampings and and Syrma SGS Technology, you can compare the effects of market volatilities on Automotive Stampings and Syrma SGS 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 Automotive Stampings with a short position of Syrma SGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automotive Stampings and Syrma SGS.
Diversification Opportunities for Automotive Stampings and Syrma SGS
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Automotive and Syrma is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Automotive Stampings and and Syrma SGS Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syrma SGS Technology and Automotive Stampings 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 Automotive Stampings and are associated (or correlated) with Syrma SGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syrma SGS Technology has no effect on the direction of Automotive Stampings i.e., Automotive Stampings and Syrma SGS go up and down completely randomly.
Pair Corralation between Automotive Stampings and Syrma SGS
Assuming the 90 days trading horizon Automotive Stampings and is expected to under-perform the Syrma SGS. But the stock apears to be less risky and, when comparing its historical volatility, Automotive Stampings and is 1.21 times less risky than Syrma SGS. The stock trades about -0.26 of its potential returns per unit of risk. The Syrma SGS Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 57,865 in Syrma SGS Technology on October 11, 2024 and sell it today you would earn a total of 3,150 from holding Syrma SGS Technology or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automotive Stampings and vs. Syrma SGS Technology
Performance |
| Timeline |
| Automotive Stampings and |
| Syrma SGS Technology |
Automotive Stampings and Syrma SGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automotive Stampings and Syrma SGS
The main advantage of trading using opposite Automotive Stampings and Syrma SGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automotive Stampings position performs unexpectedly, Syrma SGS 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 Syrma SGS will offset losses from the drop in Syrma SGS's long position.| Automotive Stampings vs. ADF Foods Limited | Automotive Stampings vs. Hilton Metal Forging | Automotive Stampings vs. Dodla Dairy Limited | Automotive Stampings vs. LLOYDS METALS AND |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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