Correlation Between Edelweiss Financial and Sasken Technologies
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By analyzing existing cross correlation between Edelweiss Financial Services and Sasken Technologies Limited, you can compare the effects of market volatilities on Edelweiss Financial and Sasken Technologies 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 Edelweiss Financial with a short position of Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edelweiss Financial and Sasken Technologies.
Diversification Opportunities for Edelweiss Financial and Sasken Technologies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Edelweiss and Sasken is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Edelweiss Financial Services and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies and Edelweiss Financial 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 Edelweiss Financial Services are associated (or correlated) with Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of Edelweiss Financial i.e., Edelweiss Financial and Sasken Technologies go up and down completely randomly.
Pair Corralation between Edelweiss Financial and Sasken Technologies
Assuming the 90 days trading horizon Edelweiss Financial Services is expected to generate 2.19 times more return on investment than Sasken Technologies. However, Edelweiss Financial is 2.19 times more volatile than Sasken Technologies Limited. It trades about 0.07 of its potential returns per unit of risk. Sasken Technologies Limited is currently generating about 0.08 per unit of risk. If you would invest 3,585 in Edelweiss Financial Services on October 12, 2024 and sell it today you would earn a total of 7,840 from holding Edelweiss Financial Services or generate 218.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Edelweiss Financial Services vs. Sasken Technologies Limited
Performance |
| Timeline |
| Edelweiss Financial |
| Sasken Technologies |
Edelweiss Financial and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edelweiss Financial and Sasken Technologies
The main advantage of trading using opposite Edelweiss Financial and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edelweiss Financial position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.| Edelweiss Financial vs. Sunflag Iron And | Edelweiss Financial vs. Electrosteel Castings Limited | Edelweiss Financial vs. Prakash Steelage Limited | Edelweiss Financial vs. Manaksia Steels Limited |
| Sasken Technologies vs. Edelweiss Financial Services | Sasken Technologies vs. DCM Financial Services | Sasken Technologies vs. The Federal Bank | Sasken Technologies vs. Home First Finance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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