Correlation Between Generic Engineering and India Glycols
Specify exactly 2 symbols:
By analyzing existing cross correlation between Generic Engineering Construction and India Glycols Limited, you can compare the effects of market volatilities on Generic Engineering and India Glycols 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 Generic Engineering with a short position of India Glycols. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generic Engineering and India Glycols.
Diversification Opportunities for Generic Engineering and India Glycols
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Generic and India is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Generic Engineering Constructi and India Glycols Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on India Glycols Limited and Generic Engineering 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 Generic Engineering Construction are associated (or correlated) with India Glycols. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of India Glycols Limited has no effect on the direction of Generic Engineering i.e., Generic Engineering and India Glycols go up and down completely randomly.
Pair Corralation between Generic Engineering and India Glycols
Assuming the 90 days trading horizon Generic Engineering Construction is expected to under-perform the India Glycols. In addition to that, Generic Engineering is 1.38 times more volatile than India Glycols Limited. It trades about -0.42 of its total potential returns per unit of risk. India Glycols Limited is currently generating about -0.38 per unit of volatility. If you would invest 134,465 in India Glycols Limited on December 4, 2024 and sell it today you would lose (29,550) from holding India Glycols Limited or give up 21.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generic Engineering Constructi vs. India Glycols Limited
Performance |
| Timeline |
| Generic Engineering |
| India Glycols Limited |
Generic Engineering and India Glycols Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generic Engineering and India Glycols
The main advantage of trading using opposite Generic Engineering and India Glycols positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generic Engineering position performs unexpectedly, India Glycols 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 India Glycols will offset losses from the drop in India Glycols' long position.The idea behind Generic Engineering Construction and India Glycols Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| India Glycols vs. DJ Mediaprint Logistics | India Glycols vs. Bharatiya Global Infomedia | India Glycols vs. ADF Foods Limited | India Glycols vs. Bodhi Tree Multimedia |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |