Correlation Between Elgi Rubber and Styrenix Performance
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By analyzing existing cross correlation between Elgi Rubber and Styrenix Performance Materials, you can compare the effects of market volatilities on Elgi Rubber and Styrenix Performance 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 Styrenix Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elgi Rubber and Styrenix Performance.
Diversification Opportunities for Elgi Rubber and Styrenix Performance
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elgi and Styrenix is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Elgi Rubber and Styrenix Performance Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Styrenix Performance 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 Styrenix Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Styrenix Performance has no effect on the direction of Elgi Rubber i.e., Elgi Rubber and Styrenix Performance go up and down completely randomly.
Pair Corralation between Elgi Rubber and Styrenix Performance
Assuming the 90 days trading horizon Elgi Rubber is expected to under-perform the Styrenix Performance. But the stock apears to be less risky and, when comparing its historical volatility, Elgi Rubber is 1.07 times less risky than Styrenix Performance. The stock trades about -0.7 of its potential returns per unit of risk. The Styrenix Performance Materials is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 273,210 in Styrenix Performance Materials on November 18, 2024 and sell it today you would lose (30,600) from holding Styrenix Performance Materials or give up 11.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elgi Rubber vs. Styrenix Performance Materials
Performance |
| Timeline |
| Elgi Rubber |
| Styrenix Performance |
Elgi Rubber and Styrenix Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elgi Rubber and Styrenix Performance
The main advantage of trading using opposite Elgi Rubber and Styrenix Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elgi Rubber position performs unexpectedly, Styrenix Performance 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 Styrenix Performance will offset losses from the drop in Styrenix Performance's long position.| Elgi Rubber vs. Hisar Metal Industries | Elgi Rubber vs. Sambhaav Media Limited | Elgi Rubber vs. HT Media Limited | Elgi Rubber vs. Sarthak Metals Limited |
| Styrenix Performance vs. Welspun Investments and | Styrenix Performance vs. Jindal Poly Investment | Styrenix Performance vs. AUTHUM INVESTMENT INFRASTRUCTU | Styrenix Performance vs. Oriental Hotels 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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