Correlation Between Industrial Investment and POWERGRID Infrastructure
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By analyzing existing cross correlation between Industrial Investment Trust and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on Industrial Investment and POWERGRID Infrastructure 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 Industrial Investment with a short position of POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Investment and POWERGRID Infrastructure.
Diversification Opportunities for Industrial Investment and POWERGRID Infrastructure
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and POWERGRID is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Investment Trust and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure and Industrial Investment 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 Industrial Investment Trust are associated (or correlated) with POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Industrial Investment i.e., Industrial Investment and POWERGRID Infrastructure go up and down completely randomly.
Pair Corralation between Industrial Investment and POWERGRID Infrastructure
Assuming the 90 days trading horizon Industrial Investment Trust is expected to generate 4.71 times more return on investment than POWERGRID Infrastructure. However, Industrial Investment is 4.71 times more volatile than POWERGRID Infrastructure Investment. It trades about 0.08 of its potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about -0.12 per unit of risk. If you would invest 10,545 in Industrial Investment Trust on October 11, 2024 and sell it today you would earn a total of 19,120 from holding Industrial Investment Trust or generate 181.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Industrial Investment Trust vs. POWERGRID Infrastructure Inves
Performance |
| Timeline |
| Industrial Investment |
| POWERGRID Infrastructure |
Industrial Investment and POWERGRID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Investment and POWERGRID Infrastructure
The main advantage of trading using opposite Industrial Investment and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Investment position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.| Industrial Investment vs. Salzer Electronics Limited | Industrial Investment vs. Royal Orchid Hotels | Industrial Investment vs. Popular Vehicles and | Industrial Investment vs. TVS Electronics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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