Correlation Between Delta Manufacturing and Refex Industries
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By analyzing existing cross correlation between Delta Manufacturing Limited and Refex Industries Limited, you can compare the effects of market volatilities on Delta Manufacturing and Refex Industries 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 Delta Manufacturing with a short position of Refex Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Manufacturing and Refex Industries.
Diversification Opportunities for Delta Manufacturing and Refex Industries
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Delta and Refex is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Delta Manufacturing Limited and Refex Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refex Industries and Delta Manufacturing 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 Delta Manufacturing Limited are associated (or correlated) with Refex Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Refex Industries has no effect on the direction of Delta Manufacturing i.e., Delta Manufacturing and Refex Industries go up and down completely randomly.
Pair Corralation between Delta Manufacturing and Refex Industries
Assuming the 90 days trading horizon Delta Manufacturing Limited is expected to under-perform the Refex Industries. In addition to that, Delta Manufacturing is 1.06 times more volatile than Refex Industries Limited. It trades about -0.1 of its total potential returns per unit of risk. Refex Industries Limited is currently generating about -0.03 per unit of volatility. If you would invest 46,565 in Refex Industries Limited on November 7, 2024 and sell it today you would lose (1,145) from holding Refex Industries Limited or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Delta Manufacturing Limited vs. Refex Industries Limited
Performance |
| Timeline |
| Delta Manufacturing |
| Refex Industries |
Delta Manufacturing and Refex Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Manufacturing and Refex Industries
The main advantage of trading using opposite Delta Manufacturing and Refex Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Manufacturing position performs unexpectedly, Refex Industries 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 Refex Industries will offset losses from the drop in Refex Industries' long position.| Delta Manufacturing vs. Indian Metals Ferro | Delta Manufacturing vs. NRB Industrial Bearings | Delta Manufacturing vs. Navneet Education Limited | Delta Manufacturing vs. Nahar Industrial Enterprises |
| Refex Industries vs. IOL Chemicals and | Refex Industries vs. AUTHUM INVESTMENT INFRASTRUCTU | Refex Industries vs. Kalyani Investment | Refex Industries vs. SIL Investments 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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