Correlation Between Elgi Rubber and Mangalam Drugs
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By analyzing existing cross correlation between Elgi Rubber and Mangalam Drugs And, you can compare the effects of market volatilities on Elgi Rubber and Mangalam Drugs 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 Elgi Rubber with a short position of Mangalam Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elgi Rubber and Mangalam Drugs.
Diversification Opportunities for Elgi Rubber and Mangalam Drugs
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elgi and Mangalam is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Elgi Rubber and Mangalam Drugs And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangalam Drugs And and Elgi Rubber 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 Elgi Rubber are associated (or correlated) with Mangalam Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangalam Drugs And has no effect on the direction of Elgi Rubber i.e., Elgi Rubber and Mangalam Drugs go up and down completely randomly.
Pair Corralation between Elgi Rubber and Mangalam Drugs
Assuming the 90 days trading horizon Elgi Rubber is expected to generate 6.24 times more return on investment than Mangalam Drugs. However, Elgi Rubber is 6.24 times more volatile than Mangalam Drugs And. It trades about 0.14 of its potential returns per unit of risk. Mangalam Drugs And is currently generating about -0.2 per unit of risk. If you would invest 9,284 in Elgi Rubber on August 31, 2024 and sell it today you would earn a total of 1,457 from holding Elgi Rubber or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elgi Rubber vs. Mangalam Drugs And
Performance |
| Timeline |
| Elgi Rubber |
| Mangalam Drugs And |
Elgi Rubber and Mangalam Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elgi Rubber and Mangalam Drugs
The main advantage of trading using opposite Elgi Rubber and Mangalam Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elgi Rubber position performs unexpectedly, Mangalam Drugs 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 Mangalam Drugs will offset losses from the drop in Mangalam Drugs' long position.| Elgi Rubber vs. Kingfa Science Technology | Elgi Rubber vs. GTL Limited | Elgi Rubber vs. Indo Amines Limited | Elgi Rubber vs. HDFC Mutual Fund |
| Mangalam Drugs vs. MRF Limited | Mangalam Drugs vs. Honeywell Automation India | Mangalam Drugs vs. Page Industries Limited | Mangalam Drugs vs. 3M India 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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