Correlation Between Home First and Spencers Retail
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By analyzing existing cross correlation between Home First Finance and Spencers Retail Limited, you can compare the effects of market volatilities on Home First and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and Spencers Retail.
Diversification Opportunities for Home First and Spencers Retail
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Home and Spencers is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Home First i.e., Home First and Spencers Retail go up and down completely randomly.
Pair Corralation between Home First and Spencers Retail
Assuming the 90 days trading horizon Home First is expected to generate 20.36 times less return on investment than Spencers Retail. But when comparing it to its historical volatility, Home First Finance is 1.42 times less risky than Spencers Retail. It trades about 0.0 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,782 in Spencers Retail Limited on October 11, 2024 and sell it today you would earn a total of 35.00 from holding Spencers Retail Limited or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home First Finance vs. Spencers Retail Limited
Performance |
| Timeline |
| Home First Finance |
| Spencers Retail |
Home First and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and Spencers Retail
The main advantage of trading using opposite Home First and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home First position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| Home First vs. Akums Drugs and | Home First vs. Indraprastha Medical | Home First vs. Welspun Investments and | Home First vs. ILFS Investment Managers |
| Spencers Retail vs. Home First Finance | Spencers Retail vs. Data Patterns Limited | Spencers Retail vs. Garware Hi Tech Films | Spencers Retail vs. Golden Tobacco 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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