Correlation Between Exide Industries and SEPC
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By analyzing existing cross correlation between Exide Industries Limited and SEPC Limited, you can compare the effects of market volatilities on Exide Industries and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exide Industries and SEPC.
Diversification Opportunities for Exide Industries and SEPC
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Exide and SEPC is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Exide Industries Limited and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of Exide Industries i.e., Exide Industries and SEPC go up and down completely randomly.
Pair Corralation between Exide Industries and SEPC
Assuming the 90 days trading horizon Exide Industries Limited is expected to generate 0.58 times more return on investment than SEPC. However, Exide Industries Limited is 1.72 times less risky than SEPC. It trades about -0.42 of its potential returns per unit of risk. SEPC Limited is currently generating about -0.38 per unit of risk. If you would invest 46,700 in Exide Industries Limited on October 9, 2024 and sell it today you would lose (5,805) from holding Exide Industries Limited or give up 12.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Exide Industries Limited vs. SEPC Limited
Performance |
| Timeline |
| Exide Industries |
| SEPC Limited |
Exide Industries and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exide Industries and SEPC
The main advantage of trading using opposite Exide Industries and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exide Industries position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.| Exide Industries vs. Reliance Industries Limited | Exide Industries vs. Tata Consultancy Services | Exide Industries vs. HDFC Bank Limited | Exide Industries vs. Bharti Airtel Limited |
| SEPC vs. Touchwood Entertainment Limited | SEPC vs. DJ Mediaprint Logistics | SEPC vs. Computer Age Management | SEPC vs. Entertainment Network 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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