Correlation Between Future Retail and State Trading
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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 Limited is expected to under-perform the State Trading. But the stock apears to be less risky and, when comparing its historical volatility, Future Retail Limited is 1.94 times less risky than State Trading. The stock trades about -0.03 of its potential returns per unit of risk. The The State Trading is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12,470 in The State Trading on January 25, 2025 and sell it today you would earn a total of 263.00 from holding The State Trading or generate 2.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 92.08% |
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. General Insurance | Future Retail vs. Usha Martin Education | Future Retail vs. Total Transport Systems | Future Retail vs. Pritish Nandy Communications |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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