Correlation Between Electrosteel Castings and AGI Greenpac
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By analyzing existing cross correlation between Electrosteel Castings Limited and AGI Greenpac Limited, you can compare the effects of market volatilities on Electrosteel Castings and AGI Greenpac 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 Electrosteel Castings with a short position of AGI Greenpac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and AGI Greenpac.
Diversification Opportunities for Electrosteel Castings and AGI Greenpac
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrosteel and AGI is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and AGI Greenpac Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGI Greenpac Limited and Electrosteel Castings 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 Electrosteel Castings Limited are associated (or correlated) with AGI Greenpac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGI Greenpac Limited has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and AGI Greenpac go up and down completely randomly.
Pair Corralation between Electrosteel Castings and AGI Greenpac
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to under-perform the AGI Greenpac. But the stock apears to be less risky and, when comparing its historical volatility, Electrosteel Castings Limited is 1.39 times less risky than AGI Greenpac. The stock trades about -0.36 of its potential returns per unit of risk. The AGI Greenpac Limited is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 120,125 in AGI Greenpac Limited on October 10, 2024 and sell it today you would lose (15,980) from holding AGI Greenpac Limited or give up 13.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. AGI Greenpac Limited
Performance |
| Timeline |
| Electrosteel Castings |
| AGI Greenpac Limited |
Electrosteel Castings and AGI Greenpac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and AGI Greenpac
The main advantage of trading using opposite Electrosteel Castings and AGI Greenpac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, AGI Greenpac 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 AGI Greenpac will offset losses from the drop in AGI Greenpac's long position.| Electrosteel Castings vs. NMDC Limited | Electrosteel Castings vs. Steel Authority of | Electrosteel Castings vs. Embassy Office Parks | Electrosteel Castings vs. Jai Balaji Industries |
| AGI Greenpac vs. NMDC Limited | AGI Greenpac vs. Steel Authority of | AGI Greenpac vs. Embassy Office Parks | AGI Greenpac vs. Jai Balaji 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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