Correlation Between Fedbank Financial and Silgo Retail
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By analyzing existing cross correlation between Fedbank Financial Services and Silgo Retail Limited, you can compare the effects of market volatilities on Fedbank Financial and Silgo Retail 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 Fedbank Financial with a short position of Silgo Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fedbank Financial and Silgo Retail.
Diversification Opportunities for Fedbank Financial and Silgo Retail
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fedbank and Silgo is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fedbank Financial Services and Silgo Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgo Retail Limited and Fedbank Financial 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 Fedbank Financial Services are associated (or correlated) with Silgo Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgo Retail Limited has no effect on the direction of Fedbank Financial i.e., Fedbank Financial and Silgo Retail go up and down completely randomly.
Pair Corralation between Fedbank Financial and Silgo Retail
Assuming the 90 days trading horizon Fedbank Financial Services is expected to under-perform the Silgo Retail. But the stock apears to be less risky and, when comparing its historical volatility, Fedbank Financial Services is 2.53 times less risky than Silgo Retail. The stock trades about -0.07 of its potential returns per unit of risk. The Silgo Retail Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,455 in Silgo Retail Limited on November 8, 2024 and sell it today you would earn a total of 1,360 from holding Silgo Retail Limited or generate 55.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.1% |
| Values | Daily Returns |
Fedbank Financial Services vs. Silgo Retail Limited
Performance |
| Timeline |
| Fedbank Financial |
| Silgo Retail Limited |
Fedbank Financial and Silgo Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fedbank Financial and Silgo Retail
The main advantage of trading using opposite Fedbank Financial and Silgo Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fedbank Financial position performs unexpectedly, Silgo Retail 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 Silgo Retail will offset losses from the drop in Silgo Retail's long position.| Fedbank Financial vs. Vertoz Advertising Limited | Fedbank Financial vs. Garware Hi Tech Films | Fedbank Financial vs. Sonata Software Limited | Fedbank Financial vs. Tera Software Limited |
| Silgo Retail vs. State Bank of | Silgo Retail vs. Life Insurance | Silgo Retail vs. HDFC Bank Limited | Silgo Retail vs. ICICI Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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