Correlation Between Home First and Megastar Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Home First Finance and Megastar Foods Limited, you can compare the effects of market volatilities on Home First and Megastar Foods 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 Home First with a short position of Megastar Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and Megastar Foods.
Diversification Opportunities for Home First and Megastar Foods
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Home and Megastar is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance and Megastar Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megastar Foods and Home First 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 Home First Finance are associated (or correlated) with Megastar Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megastar Foods has no effect on the direction of Home First i.e., Home First and Megastar Foods go up and down completely randomly.
Pair Corralation between Home First and Megastar Foods
Assuming the 90 days trading horizon Home First Finance is expected to under-perform the Megastar Foods. But the stock apears to be less risky and, when comparing its historical volatility, Home First Finance is 2.48 times less risky than Megastar Foods. The stock trades about -0.04 of its potential returns per unit of risk. The Megastar Foods Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 23,792 in Megastar Foods Limited on October 14, 2024 and sell it today you would earn a total of 3,535 from holding Megastar Foods Limited or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home First Finance vs. Megastar Foods Limited
Performance |
| Timeline |
| Home First Finance |
| Megastar Foods |
Home First and Megastar Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and Megastar Foods
The main advantage of trading using opposite Home First and Megastar Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home First position performs unexpectedly, Megastar Foods 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 Megastar Foods will offset losses from the drop in Megastar Foods' long position.| Home First vs. ILFS Investment Managers | Home First vs. Royal Orchid Hotels | Home First vs. The Indian Hotels | Home First vs. Industrial Investment Trust |
| Megastar Foods vs. Styrenix Performance Materials | Megastar Foods vs. Music Broadcast Limited | Megastar Foods vs. Home First Finance | Megastar Foods vs. One 97 Communications |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |