Correlation Between Electronics Mart and Hisar Metal
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By analyzing existing cross correlation between Electronics Mart India and Hisar Metal Industries, you can compare the effects of market volatilities on Electronics Mart and Hisar Metal 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 Electronics Mart with a short position of Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and Hisar Metal.
Diversification Opportunities for Electronics Mart and Hisar Metal
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Electronics and Hisar is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries and Electronics Mart 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 Electronics Mart India are associated (or correlated) with Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of Electronics Mart i.e., Electronics Mart and Hisar Metal go up and down completely randomly.
Pair Corralation between Electronics Mart and Hisar Metal
Assuming the 90 days trading horizon Electronics Mart India is expected to generate 1.84 times more return on investment than Hisar Metal. However, Electronics Mart is 1.84 times more volatile than Hisar Metal Industries. It trades about -0.06 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about -0.12 per unit of risk. If you would invest 19,134 in Electronics Mart India on September 1, 2024 and sell it today you would lose (1,127) from holding Electronics Mart India or give up 5.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronics Mart India vs. Hisar Metal Industries
Performance |
| Timeline |
| Electronics Mart India |
| Hisar Metal Industries |
Electronics Mart and Hisar Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and Hisar Metal
The main advantage of trading using opposite Electronics Mart and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, Hisar Metal 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.| Electronics Mart vs. Osia Hyper Retail | Electronics Mart vs. Shree Pushkar Chemicals | Electronics Mart vs. UFO Moviez India | Electronics Mart vs. Mangalore Chemicals Fertilizers |
| Hisar Metal vs. Future Retail Limited | Hisar Metal vs. Metalyst Forgings Limited | Hisar Metal vs. Akme Fintrade India | Hisar Metal vs. Total Transport Systems |
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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