Correlation Between Home First and S P
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By analyzing existing cross correlation between Home First Finance and S P Apparels, you can compare the effects of market volatilities on Home First and S P 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 S P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and S P.
Diversification Opportunities for Home First and S P
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Home and SPAL is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance and S P Apparels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S P Apparels 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 S P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S P Apparels has no effect on the direction of Home First i.e., Home First and S P go up and down completely randomly.
Pair Corralation between Home First and S P
Assuming the 90 days trading horizon Home First Finance is expected to under-perform the S P. But the stock apears to be less risky and, when comparing its historical volatility, Home First Finance is 2.15 times less risky than S P. The stock trades about -0.09 of its potential returns per unit of risk. The S P Apparels is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 88,615 in S P Apparels on November 7, 2024 and sell it today you would earn a total of 3,505 from holding S P Apparels or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Home First Finance vs. S P Apparels
Performance |
| Timeline |
| Home First Finance |
| S P Apparels |
Home First and S P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and S P
The main advantage of trading using opposite Home First and S P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home First position performs unexpectedly, S P 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 S P will offset losses from the drop in S P's long position.| Home First vs. Apex Frozen Foods | Home First vs. Sintex Plastics Technology | Home First vs. Mrs Bectors Food | Home First vs. Foods Inns Limited |
| S P vs. 21st Century Management | S P vs. Jubilant Foodworks Limited | S P vs. Akums Drugs and | S P vs. HDFC Asset Management |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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