Correlation Between IG Petrochemicals and Uniinfo Telecom
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By analyzing existing cross correlation between IG Petrochemicals Limited and Uniinfo Telecom Services, you can compare the effects of market volatilities on IG Petrochemicals and Uniinfo Telecom 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 Uniinfo Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of IG Petrochemicals and Uniinfo Telecom.
Diversification Opportunities for IG Petrochemicals and Uniinfo Telecom
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IGPL and Uniinfo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding IG Petrochemicals Limited and Uniinfo Telecom Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniinfo Telecom Services 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 Uniinfo Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniinfo Telecom Services has no effect on the direction of IG Petrochemicals i.e., IG Petrochemicals and Uniinfo Telecom go up and down completely randomly.
Pair Corralation between IG Petrochemicals and Uniinfo Telecom
Assuming the 90 days trading horizon IG Petrochemicals Limited is expected to generate 0.5 times more return on investment than Uniinfo Telecom. However, IG Petrochemicals Limited is 2.01 times less risky than Uniinfo Telecom. It trades about -0.22 of its potential returns per unit of risk. Uniinfo Telecom Services is currently generating about -0.21 per unit of risk. If you would invest 60,020 in IG Petrochemicals Limited on October 9, 2024 and sell it today you would lose (5,615) from holding IG Petrochemicals Limited or give up 9.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IG Petrochemicals Limited vs. Uniinfo Telecom Services
Performance |
| Timeline |
| IG Petrochemicals |
| Uniinfo Telecom Services |
IG Petrochemicals and Uniinfo Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IG Petrochemicals and Uniinfo Telecom
The main advantage of trading using opposite IG Petrochemicals and Uniinfo Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IG Petrochemicals position performs unexpectedly, Uniinfo Telecom 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 Uniinfo Telecom will offset losses from the drop in Uniinfo Telecom's long position.| IG Petrochemicals vs. Aster DM Healthcare | IG Petrochemicals vs. Entero Healthcare Solutions | IG Petrochemicals vs. Lotus Eye Hospital | IG Petrochemicals vs. Indian Metals Ferro |
| Uniinfo Telecom vs. Le Travenues Technology | Uniinfo Telecom vs. Cybertech Systems And | Uniinfo Telecom vs. California Software | Uniinfo Telecom vs. Praxis Home Retail |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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