Correlation Between AU Small and Max Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between AU Small Finance and Max Financial Services, you can compare the effects of market volatilities on AU Small and Max Financial 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 AU Small with a short position of Max Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AU Small and Max Financial.
Diversification Opportunities for AU Small and Max Financial
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUBANK and Max is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AU Small Finance and Max Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Max Financial Services and AU Small 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 AU Small Finance are associated (or correlated) with Max Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Max Financial Services has no effect on the direction of AU Small i.e., AU Small and Max Financial go up and down completely randomly.
Pair Corralation between AU Small and Max Financial
Assuming the 90 days trading horizon AU Small Finance is expected to generate 0.99 times more return on investment than Max Financial. However, AU Small Finance is 1.01 times less risky than Max Financial. It trades about -0.12 of its potential returns per unit of risk. Max Financial Services is currently generating about -0.25 per unit of risk. If you would invest 62,000 in AU Small Finance on August 27, 2024 and sell it today you would lose (2,370) from holding AU Small Finance or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
AU Small Finance vs. Max Financial Services
Performance |
| Timeline |
| AU Small Finance |
| Max Financial Services |
AU Small and Max Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AU Small and Max Financial
The main advantage of trading using opposite AU Small and Max Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AU Small position performs unexpectedly, Max Financial 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 Max Financial will offset losses from the drop in Max Financial's long position.| AU Small vs. Lakshmi Finance Industrial | AU Small vs. MEDI ASSIST HEALTHCARE | AU Small vs. Global Health Limited | AU Small vs. Shivalik Bimetal Controls |
| Max Financial vs. Gangotri Textiles Limited | Max Financial vs. Hemisphere Properties India | Max Financial vs. Kingfa Science Technology | Max Financial 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |