Correlation Between Embassy Office and Premier Polyfilm
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By analyzing existing cross correlation between Embassy Office Parks and Premier Polyfilm Limited, you can compare the effects of market volatilities on Embassy Office and Premier Polyfilm 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 Embassy Office with a short position of Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Office and Premier Polyfilm.
Diversification Opportunities for Embassy Office and Premier Polyfilm
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embassy and Premier is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Office Parks and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm and Embassy Office 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 Embassy Office Parks are associated (or correlated) with Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of Embassy Office i.e., Embassy Office and Premier Polyfilm go up and down completely randomly.
Pair Corralation between Embassy Office and Premier Polyfilm
Assuming the 90 days trading horizon Embassy Office Parks is expected to generate 0.63 times more return on investment than Premier Polyfilm. However, Embassy Office Parks is 1.58 times less risky than Premier Polyfilm. It trades about 0.0 of its potential returns per unit of risk. Premier Polyfilm Limited is currently generating about -0.79 per unit of risk. If you would invest 37,200 in Embassy Office Parks on November 2, 2024 and sell it today you would lose (27.00) from holding Embassy Office Parks or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embassy Office Parks vs. Premier Polyfilm Limited
Performance |
| Timeline |
| Embassy Office Parks |
| Premier Polyfilm |
Embassy Office and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embassy Office and Premier Polyfilm
The main advantage of trading using opposite Embassy Office and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Office position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| Embassy Office vs. Healthcare Global Enterprises | Embassy Office vs. Max Healthcare Institute | Embassy Office vs. GM Breweries Limited | Embassy Office vs. Tips Music Limited |
| Premier Polyfilm vs. NMDC Limited | Premier Polyfilm vs. Steel Authority of | Premier Polyfilm vs. Embassy Office Parks | Premier Polyfilm vs. Jai Balaji 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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