Correlation Between Cartrade Tech and Steelcast
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By analyzing existing cross correlation between Cartrade Tech Limited and Steelcast Limited, you can compare the effects of market volatilities on Cartrade Tech and Steelcast 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 Cartrade Tech with a short position of Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartrade Tech and Steelcast.
Diversification Opportunities for Cartrade Tech and Steelcast
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cartrade and Steelcast is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cartrade Tech Limited and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast Limited and Cartrade Tech 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 Cartrade Tech Limited are associated (or correlated) with Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of Cartrade Tech i.e., Cartrade Tech and Steelcast go up and down completely randomly.
Pair Corralation between Cartrade Tech and Steelcast
Assuming the 90 days trading horizon Cartrade Tech Limited is expected to generate 1.7 times more return on investment than Steelcast. However, Cartrade Tech is 1.7 times more volatile than Steelcast Limited. It trades about -0.03 of its potential returns per unit of risk. Steelcast Limited is currently generating about -0.06 per unit of risk. If you would invest 149,830 in Cartrade Tech Limited on October 17, 2024 and sell it today you would lose (5,685) from holding Cartrade Tech Limited or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cartrade Tech Limited vs. Steelcast Limited
Performance |
| Timeline |
| Cartrade Tech Limited |
| Steelcast Limited |
Cartrade Tech and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cartrade Tech and Steelcast
The main advantage of trading using opposite Cartrade Tech and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartrade Tech position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.| Cartrade Tech vs. Baazar Style Retail | Cartrade Tech vs. DMCC SPECIALITY CHEMICALS | Cartrade Tech vs. Fertilizers and Chemicals | Cartrade Tech vs. Neogen Chemicals Limited |
| Steelcast vs. Hexa Tradex Limited | Steelcast vs. Tamilnad Mercantile Bank | Steelcast vs. Cartrade Tech Limited | Steelcast vs. Credo Brands Marketing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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