Correlation Between Exide Industries and ITI
Specify exactly 2 symbols:
By analyzing existing cross correlation between Exide Industries Limited and ITI Limited, you can compare the effects of market volatilities on Exide Industries and ITI 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 ITI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exide Industries and ITI.
Diversification Opportunities for Exide Industries and ITI
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exide and ITI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Exide Industries Limited and ITI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITI Limited 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 ITI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITI Limited has no effect on the direction of Exide Industries i.e., Exide Industries and ITI go up and down completely randomly.
Pair Corralation between Exide Industries and ITI
Assuming the 90 days trading horizon Exide Industries Limited is expected to generate 0.7 times more return on investment than ITI. However, Exide Industries Limited is 1.43 times less risky than ITI. It trades about 0.08 of its potential returns per unit of risk. ITI Limited is currently generating about 0.01 per unit of risk. If you would invest 29,376 in Exide Industries Limited on September 2, 2024 and sell it today you would earn a total of 15,884 from holding Exide Industries Limited or generate 54.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Exide Industries Limited vs. ITI Limited
Performance |
| Timeline |
| Exide Industries |
| ITI Limited |
Exide Industries and ITI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exide Industries and ITI
The main advantage of trading using opposite Exide Industries and ITI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exide Industries position performs unexpectedly, ITI 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 ITI will offset losses from the drop in ITI's long position.| Exide Industries vs. Embassy Office Parks | Exide Industries vs. HDFC Asset Management | Exide Industries vs. Zee Entertainment Enterprises | Exide Industries vs. UTI Asset Management |
| ITI vs. Tata Communications Limited | ITI vs. Embassy Office Parks | ITI vs. Dev Information Technology | ITI vs. Repco Home Finance |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |