Correlation Between Cyient and MRF
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By analyzing existing cross correlation between Cyient Limited and MRF Limited, you can compare the effects of market volatilities on Cyient and MRF 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 Cyient with a short position of MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyient and MRF.
Diversification Opportunities for Cyient and MRF
Poor diversification
The 3 months correlation between Cyient and MRF is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cyient Limited and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF Limited and Cyient 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 Cyient Limited are associated (or correlated) with MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Cyient i.e., Cyient and MRF go up and down completely randomly.
Pair Corralation between Cyient and MRF
Assuming the 90 days trading horizon Cyient Limited is expected to generate 1.5 times more return on investment than MRF. However, Cyient is 1.5 times more volatile than MRF Limited. It trades about 0.01 of its potential returns per unit of risk. MRF Limited is currently generating about 0.0 per unit of risk. If you would invest 188,647 in Cyient Limited on September 5, 2024 and sell it today you would lose (987.00) from holding Cyient Limited or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Cyient Limited vs. MRF Limited
Performance |
| Timeline |
| Cyient Limited |
| MRF Limited |
Cyient and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyient and MRF
The main advantage of trading using opposite Cyient and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyient position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF's long position.| Cyient vs. MRF Limited | Cyient vs. Bosch Limited | Cyient vs. Bajaj Holdings Investment | Cyient vs. Vardhman Holdings Limited |
| MRF vs. General Insurance | MRF vs. Cantabil Retail India | MRF vs. Sri Havisha Hospitality | MRF vs. The Byke Hospitality |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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