Correlation Between IG Petrochemicals and Max Healthcare
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By analyzing existing cross correlation between IG Petrochemicals Limited and Max Healthcare Institute, you can compare the effects of market volatilities on IG Petrochemicals and Max 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 IG Petrochemicals with a short position of Max Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of IG Petrochemicals and Max Healthcare.
Diversification Opportunities for IG Petrochemicals and Max Healthcare
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between IGPL and Max is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding IG Petrochemicals Limited and Max Healthcare Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Max Healthcare Institute and IG Petrochemicals 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 IG Petrochemicals Limited are associated (or correlated) with Max Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Max Healthcare Institute has no effect on the direction of IG Petrochemicals i.e., IG Petrochemicals and Max Healthcare go up and down completely randomly.
Pair Corralation between IG Petrochemicals and Max Healthcare
Assuming the 90 days trading horizon IG Petrochemicals Limited is expected to under-perform the Max Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, IG Petrochemicals Limited is 1.11 times less risky than Max Healthcare. The stock trades about -0.38 of its potential returns per unit of risk. The Max Healthcare Institute is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 97,975 in Max Healthcare Institute on October 30, 2024 and sell it today you would earn a total of 5,020 from holding Max Healthcare Institute or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
IG Petrochemicals Limited vs. Max Healthcare Institute
Performance |
| Timeline |
| IG Petrochemicals |
| Max Healthcare Institute |
IG Petrochemicals and Max Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IG Petrochemicals and Max Healthcare
The main advantage of trading using opposite IG Petrochemicals and Max Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IG Petrochemicals position performs unexpectedly, Max 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 Max Healthcare will offset losses from the drop in Max Healthcare's long position.| IG Petrochemicals vs. GPT Healthcare | IG Petrochemicals vs. Aster DM Healthcare | IG Petrochemicals vs. Medplus Health Services | IG Petrochemicals vs. Sri Havisha Hospitality |
| Max Healthcare vs. Tube Investments of | Max Healthcare vs. SIL Investments Limited | Max Healthcare vs. Dhunseri Investments Limited | Max Healthcare vs. Bajaj Holdings Investment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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