Correlation Between Electrosteel Castings and Hexa Tradex
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By analyzing existing cross correlation between Electrosteel Castings Limited and Hexa Tradex Limited, you can compare the effects of market volatilities on Electrosteel Castings and Hexa Tradex 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 Hexa Tradex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Hexa Tradex.
Diversification Opportunities for Electrosteel Castings and Hexa Tradex
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electrosteel and Hexa is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and Hexa Tradex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexa Tradex 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 Hexa Tradex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexa Tradex Limited has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and Hexa Tradex go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Hexa Tradex
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to generate 1.21 times more return on investment than Hexa Tradex. However, Electrosteel Castings is 1.21 times more volatile than Hexa Tradex Limited. It trades about -0.18 of its potential returns per unit of risk. Hexa Tradex Limited is currently generating about -0.4 per unit of risk. If you would invest 13,966 in Electrosteel Castings Limited on October 25, 2024 and sell it today you would lose (1,655) from holding Electrosteel Castings Limited or give up 11.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. Hexa Tradex Limited
Performance |
| Timeline |
| Electrosteel Castings |
| Hexa Tradex Limited |
Electrosteel Castings and Hexa Tradex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Hexa Tradex
The main advantage of trading using opposite Electrosteel Castings and Hexa Tradex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, Hexa Tradex 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 Hexa Tradex will offset losses from the drop in Hexa Tradex's long position.| Electrosteel Castings vs. Computer Age Management | Electrosteel Castings vs. UCO Bank | Electrosteel Castings vs. Arman Financial Services | Electrosteel Castings vs. Syrma SGS Technology |
| Hexa Tradex vs. Privi Speciality Chemicals | Hexa Tradex vs. Sukhjit Starch Chemicals | Hexa Tradex vs. Tera Software Limited | Hexa Tradex vs. Mangalore Chemicals Fertilizers |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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