Correlation Between Exide Industries and Delta Manufacturing
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By analyzing existing cross correlation between Exide Industries Limited and Delta Manufacturing Limited, you can compare the effects of market volatilities on Exide Industries and Delta Manufacturing 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 Exide Industries with a short position of Delta Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exide Industries and Delta Manufacturing.
Diversification Opportunities for Exide Industries and Delta Manufacturing
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Exide and Delta is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Exide Industries Limited and Delta Manufacturing Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Manufacturing and Exide Industries 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 Exide Industries Limited are associated (or correlated) with Delta Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Manufacturing has no effect on the direction of Exide Industries i.e., Exide Industries and Delta Manufacturing go up and down completely randomly.
Pair Corralation between Exide Industries and Delta Manufacturing
Assuming the 90 days trading horizon Exide Industries Limited is expected to under-perform the Delta Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Exide Industries Limited is 1.55 times less risky than Delta Manufacturing. The stock trades about -0.11 of its potential returns per unit of risk. The Delta Manufacturing Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,670 in Delta Manufacturing Limited on August 30, 2024 and sell it today you would earn a total of 1,173 from holding Delta Manufacturing Limited or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Exide Industries Limited vs. Delta Manufacturing Limited
Performance |
| Timeline |
| Exide Industries |
| Delta Manufacturing |
Exide Industries and Delta Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exide Industries and Delta Manufacturing
The main advantage of trading using opposite Exide Industries and Delta Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exide Industries position performs unexpectedly, Delta Manufacturing 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 Delta Manufacturing will offset losses from the drop in Delta Manufacturing's long position.| Exide Industries vs. ADF Foods Limited | Exide Industries vs. Kamat Hotels Limited | Exide Industries vs. Advani Hotels Resorts | Exide Industries vs. Juniper Hotels |
| Delta Manufacturing vs. Dhunseri Investments Limited | Delta Manufacturing vs. Welspun Investments and | Delta Manufacturing vs. Yatra Online Limited | Delta Manufacturing vs. Tata Investment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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