Correlation Between Elgi Rubber and Sintex Plastics
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By analyzing existing cross correlation between Elgi Rubber and Sintex Plastics Technology, you can compare the effects of market volatilities on Elgi Rubber and Sintex Plastics 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 Sintex Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elgi Rubber and Sintex Plastics.
Diversification Opportunities for Elgi Rubber and Sintex Plastics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elgi and Sintex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elgi Rubber and Sintex Plastics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sintex Plastics Tech 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 Sintex Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sintex Plastics Tech has no effect on the direction of Elgi Rubber i.e., Elgi Rubber and Sintex Plastics go up and down completely randomly.
Pair Corralation between Elgi Rubber and Sintex Plastics
Assuming the 90 days trading horizon Elgi Rubber is expected to generate 1.61 times more return on investment than Sintex Plastics. However, Elgi Rubber is 1.61 times more volatile than Sintex Plastics Technology. It trades about 0.08 of its potential returns per unit of risk. Sintex Plastics Technology is currently generating about -0.06 per unit of risk. If you would invest 4,190 in Elgi Rubber on August 31, 2024 and sell it today you would earn a total of 6,551 from holding Elgi Rubber or generate 156.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.49% |
| Values | Daily Returns |
Elgi Rubber vs. Sintex Plastics Technology
Performance |
| Timeline |
| Elgi Rubber |
| Sintex Plastics Tech |
Elgi Rubber and Sintex Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elgi Rubber and Sintex Plastics
The main advantage of trading using opposite Elgi Rubber and Sintex Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elgi Rubber position performs unexpectedly, Sintex Plastics 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 Sintex Plastics will offset losses from the drop in Sintex Plastics' 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 |
| Sintex Plastics vs. Hisar Metal Industries | Sintex Plastics vs. Alkali Metals Limited | Sintex Plastics vs. Sarthak Metals Limited | Sintex Plastics vs. Agarwal Industrial |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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