Correlation Between Future Retail and State Trading
Specify exactly 2 symbols:
By analyzing existing cross correlation between Future Retail Limited and The State Trading, you can compare the effects of market volatilities on Future Retail and State Trading 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 Future Retail with a short position of State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Retail and State Trading.
Diversification Opportunities for Future Retail and State Trading
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Future and State is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Retail Limited and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading and Future Retail 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 Future Retail Limited are associated (or correlated) with State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of Future Retail i.e., Future Retail and State Trading go up and down completely randomly.
Pair Corralation between Future Retail and State Trading
Assuming the 90 days trading horizon Future Retail is expected to generate 23.49 times less return on investment than State Trading. But when comparing it to its historical volatility, Future Retail Limited is 1.5 times less risky than State Trading. It trades about 0.0 of its potential returns per unit of risk. The State Trading is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,295 in The State Trading on November 27, 2024 and sell it today you would earn a total of 4,865 from holding The State Trading or generate 66.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 83.62% |
| Values | Daily Returns |
Future Retail Limited vs. The State Trading
Performance |
| Timeline |
| Future Retail Limited |
| State Trading |
Future Retail and State Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Retail and State Trading
The main advantage of trading using opposite Future Retail and State Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Retail position performs unexpectedly, State Trading 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 State Trading will offset losses from the drop in State Trading's long position.| Future Retail vs. Tamilnadu Telecommunication Limited | Future Retail vs. Paramount Communications Limited | Future Retail vs. Indian Metals Ferro | Future Retail vs. Reliance Communications Limited |
| State Trading vs. Reliance Industries Limited | State Trading vs. HDFC Bank Limited | State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |