Correlation Between IG Petrochemicals and Shyam Metalics
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By analyzing existing cross correlation between IG Petrochemicals Limited and Shyam Metalics and, you can compare the effects of market volatilities on IG Petrochemicals and Shyam Metalics 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 Shyam Metalics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IG Petrochemicals and Shyam Metalics.
Diversification Opportunities for IG Petrochemicals and Shyam Metalics
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IGPL and Shyam is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding IG Petrochemicals Limited and Shyam Metalics and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyam Metalics 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 Shyam Metalics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyam Metalics has no effect on the direction of IG Petrochemicals i.e., IG Petrochemicals and Shyam Metalics go up and down completely randomly.
Pair Corralation between IG Petrochemicals and Shyam Metalics
Assuming the 90 days trading horizon IG Petrochemicals Limited is expected to under-perform the Shyam Metalics. But the stock apears to be less risky and, when comparing its historical volatility, IG Petrochemicals Limited is 1.08 times less risky than Shyam Metalics. The stock trades about -0.37 of its potential returns per unit of risk. The Shyam Metalics and is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 76,205 in Shyam Metalics and on November 5, 2024 and sell it today you would earn a total of 245.00 from holding Shyam Metalics and or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IG Petrochemicals Limited vs. Shyam Metalics and
Performance |
| Timeline |
| IG Petrochemicals |
| Shyam Metalics |
IG Petrochemicals and Shyam Metalics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IG Petrochemicals and Shyam Metalics
The main advantage of trading using opposite IG Petrochemicals and Shyam Metalics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IG Petrochemicals position performs unexpectedly, Shyam Metalics 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 Shyam Metalics will offset losses from the drop in Shyam Metalics' long position.| IG Petrochemicals vs. Reliance Home Finance | IG Petrochemicals vs. Music Broadcast Limited | IG Petrochemicals vs. Garware Hi Tech Films | IG Petrochemicals vs. Le Travenues Technology |
| Shyam Metalics vs. NMDC Limited | Shyam Metalics vs. Steel Authority of | Shyam Metalics vs. Embassy Office Parks | Shyam Metalics vs. Jai Balaji Industries |
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.
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