Correlation Between Hi Tech and Sakar Healthcare
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By analyzing existing cross correlation between Hi Tech Pipes Limited and Sakar Healthcare Limited, you can compare the effects of market volatilities on Hi Tech and Sakar Healthcare 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 Hi Tech with a short position of Sakar Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Tech and Sakar Healthcare.
Diversification Opportunities for Hi Tech and Sakar Healthcare
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HITECH and Sakar is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hi Tech Pipes Limited and Sakar Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakar Healthcare and Hi Tech 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 Hi Tech Pipes Limited are associated (or correlated) with Sakar Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakar Healthcare has no effect on the direction of Hi Tech i.e., Hi Tech and Sakar Healthcare go up and down completely randomly.
Pair Corralation between Hi Tech and Sakar Healthcare
Assuming the 90 days trading horizon Hi Tech Pipes Limited is expected to under-perform the Sakar Healthcare. In addition to that, Hi Tech is 1.07 times more volatile than Sakar Healthcare Limited. It trades about -0.25 of its total potential returns per unit of risk. Sakar Healthcare Limited is currently generating about -0.03 per unit of volatility. If you would invest 30,315 in Sakar Healthcare Limited on October 30, 2024 and sell it today you would lose (1,245) from holding Sakar Healthcare Limited or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Tech Pipes Limited vs. Sakar Healthcare Limited
Performance |
| Timeline |
| Hi Tech Pipes |
| Sakar Healthcare |
Hi Tech and Sakar Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Tech and Sakar Healthcare
The main advantage of trading using opposite Hi Tech and Sakar Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Tech position performs unexpectedly, Sakar Healthcare 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 Sakar Healthcare will offset losses from the drop in Sakar Healthcare's long position.| Hi Tech vs. Zenith Steel Pipes | Hi Tech vs. Hisar Metal Industries | Hi Tech vs. NMDC Steel Limited | Hi Tech vs. Teamlease Services Limited |
| Sakar Healthcare vs. LLOYDS METALS AND | Sakar Healthcare vs. Dev Information Technology | Sakar Healthcare vs. Syrma SGS Technology | Sakar Healthcare vs. Sonata Software 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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