Correlation Between Home First and STEEL EXCHANGE
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By analyzing existing cross correlation between Home First Finance and STEEL EXCHANGE INDIA, you can compare the effects of market volatilities on Home First and STEEL EXCHANGE 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 STEEL EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and STEEL EXCHANGE.
Diversification Opportunities for Home First and STEEL EXCHANGE
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Home and STEEL is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance and STEEL EXCHANGE INDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STEEL EXCHANGE INDIA 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 STEEL EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STEEL EXCHANGE INDIA has no effect on the direction of Home First i.e., Home First and STEEL EXCHANGE go up and down completely randomly.
Pair Corralation between Home First and STEEL EXCHANGE
Assuming the 90 days trading horizon Home First Finance is expected to generate 1.0 times more return on investment than STEEL EXCHANGE. However, Home First is 1.0 times more volatile than STEEL EXCHANGE INDIA. It trades about 0.04 of its potential returns per unit of risk. STEEL EXCHANGE INDIA is currently generating about -0.23 per unit of risk. If you would invest 102,985 in Home First Finance on October 12, 2024 and sell it today you would earn a total of 1,115 from holding Home First Finance or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home First Finance vs. STEEL EXCHANGE INDIA
Performance |
| Timeline |
| Home First Finance |
| STEEL EXCHANGE INDIA |
Home First and STEEL EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and STEEL EXCHANGE
The main advantage of trading using opposite Home First and STEEL EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home First position performs unexpectedly, STEEL EXCHANGE 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 STEEL EXCHANGE will offset losses from the drop in STEEL EXCHANGE'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 |
| STEEL EXCHANGE vs. V Mart Retail Limited | STEEL EXCHANGE vs. Home First Finance | STEEL EXCHANGE vs. Future Retail Limited | STEEL EXCHANGE vs. Max Healthcare Institute |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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