Correlation Between Electrosteel Castings and Hilton Metal
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By analyzing existing cross correlation between Electrosteel Castings Limited and Hilton Metal Forging, you can compare the effects of market volatilities on Electrosteel Castings and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Hilton Metal.
Diversification Opportunities for Electrosteel Castings and Hilton Metal
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electrosteel and Hilton is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and Hilton Metal go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Hilton Metal
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to generate 0.99 times more return on investment than Hilton Metal. However, Electrosteel Castings Limited is 1.01 times less risky than Hilton Metal. It trades about 0.1 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about 0.03 per unit of risk. If you would invest 3,934 in Electrosteel Castings Limited on August 25, 2024 and sell it today you would earn a total of 10,559 from holding Electrosteel Castings Limited or generate 268.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. Hilton Metal Forging
Performance |
| Timeline |
| Electrosteel Castings |
| Hilton Metal Forging |
Electrosteel Castings and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Hilton Metal
The main advantage of trading using opposite Electrosteel Castings and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| Electrosteel Castings vs. NMDC Limited | Electrosteel Castings vs. Steel Authority of | Electrosteel Castings vs. Embassy Office Parks | Electrosteel Castings vs. Gujarat Narmada Valley |
| Hilton Metal vs. Reliance Industries Limited | Hilton Metal vs. Tata Consultancy Services | Hilton Metal vs. HDFC Bank Limited | Hilton Metal vs. Bharti Airtel 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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