Correlation Between Electrosteel Castings and Sukhjit Starch
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By analyzing existing cross correlation between Electrosteel Castings Limited and Sukhjit Starch Chemicals, you can compare the effects of market volatilities on Electrosteel Castings and Sukhjit Starch 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 Sukhjit Starch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Sukhjit Starch.
Diversification Opportunities for Electrosteel Castings and Sukhjit Starch
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electrosteel and Sukhjit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and Sukhjit Starch Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sukhjit Starch Chemicals 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 Sukhjit Starch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sukhjit Starch Chemicals has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and Sukhjit Starch go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Sukhjit Starch
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to under-perform the Sukhjit Starch. In addition to that, Electrosteel Castings is 1.24 times more volatile than Sukhjit Starch Chemicals. It trades about -0.1 of its total potential returns per unit of risk. Sukhjit Starch Chemicals is currently generating about 0.16 per unit of volatility. If you would invest 24,915 in Sukhjit Starch Chemicals on September 1, 2024 and sell it today you would earn a total of 1,953 from holding Sukhjit Starch Chemicals or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. Sukhjit Starch Chemicals
Performance |
| Timeline |
| Electrosteel Castings |
| Sukhjit Starch Chemicals |
Electrosteel Castings and Sukhjit Starch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Sukhjit Starch
The main advantage of trading using opposite Electrosteel Castings and Sukhjit Starch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, Sukhjit Starch 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 Sukhjit Starch will offset losses from the drop in Sukhjit Starch's long position.| Electrosteel Castings vs. Tata Investment | Electrosteel Castings vs. Jindal Poly Investment | Electrosteel Castings vs. KNR Constructions Limited | Electrosteel Castings vs. BF Investment Limited |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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