Correlation Between Hilton Metal and Electrosteel Castings
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By analyzing existing cross correlation between Hilton Metal Forging and Electrosteel Castings Limited, you can compare the effects of market volatilities on Hilton Metal and Electrosteel Castings 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 Hilton Metal with a short position of Electrosteel Castings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Metal and Electrosteel Castings.
Diversification Opportunities for Hilton Metal and Electrosteel Castings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hilton and Electrosteel is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Metal Forging and Electrosteel Castings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrosteel Castings and Hilton Metal 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 Hilton Metal Forging are associated (or correlated) with Electrosteel Castings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrosteel Castings has no effect on the direction of Hilton Metal i.e., Hilton Metal and Electrosteel Castings go up and down completely randomly.
Pair Corralation between Hilton Metal and Electrosteel Castings
Assuming the 90 days trading horizon Hilton Metal Forging is expected to generate 0.88 times more return on investment than Electrosteel Castings. However, Hilton Metal Forging is 1.13 times less risky than Electrosteel Castings. It trades about 0.04 of its potential returns per unit of risk. Electrosteel Castings Limited is currently generating about -0.2 per unit of risk. If you would invest 7,970 in Hilton Metal Forging on August 25, 2024 and sell it today you would earn a total of 127.00 from holding Hilton Metal Forging or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Metal Forging vs. Electrosteel Castings Limited
Performance |
| Timeline |
| Hilton Metal Forging |
| Electrosteel Castings |
Hilton Metal and Electrosteel Castings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Metal and Electrosteel Castings
The main advantage of trading using opposite Hilton Metal and Electrosteel Castings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Metal position performs unexpectedly, Electrosteel Castings 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 Electrosteel Castings will offset losses from the drop in Electrosteel Castings' long position.| Hilton Metal vs. Reliance Industries Limited | Hilton Metal vs. Tata Consultancy Services | Hilton Metal vs. HDFC Bank Limited | Hilton Metal vs. Bharti Airtel Limited |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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