Correlation Between Electrosteel Castings and Manaksia Steels
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By analyzing existing cross correlation between Electrosteel Castings Limited and Manaksia Steels Limited, you can compare the effects of market volatilities on Electrosteel Castings and Manaksia Steels 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 Manaksia Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Manaksia Steels.
Diversification Opportunities for Electrosteel Castings and Manaksia Steels
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrosteel and Manaksia is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and Manaksia Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Steels 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 Manaksia Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Steels has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and Manaksia Steels go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Manaksia Steels
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to under-perform the Manaksia Steels. In addition to that, Electrosteel Castings is 1.28 times more volatile than Manaksia Steels Limited. It trades about -0.23 of its total potential returns per unit of risk. Manaksia Steels Limited is currently generating about -0.14 per unit of volatility. If you would invest 6,727 in Manaksia Steels Limited on August 29, 2024 and sell it today you would lose (512.00) from holding Manaksia Steels Limited or give up 7.61% 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. Manaksia Steels Limited
Performance |
| Timeline |
| Electrosteel Castings |
| Manaksia Steels |
Electrosteel Castings and Manaksia Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Manaksia Steels
The main advantage of trading using opposite Electrosteel Castings and Manaksia Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, Manaksia Steels 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 Manaksia Steels will offset losses from the drop in Manaksia Steels' 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 |
| Manaksia Steels vs. Embassy Office Parks | Manaksia Steels vs. Gujarat Narmada Valley | Manaksia Steels vs. Gujarat Alkalies and | Manaksia Steels vs. JTL 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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