Correlation Between Industrial Investment and Summit Securities
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By analyzing existing cross correlation between Industrial Investment Trust and Summit Securities Limited, you can compare the effects of market volatilities on Industrial Investment and Summit Securities 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 Summit Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Investment and Summit Securities.
Diversification Opportunities for Industrial Investment and Summit Securities
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Summit is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Investment Trust and Summit Securities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Securities 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 Summit Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Securities has no effect on the direction of Industrial Investment i.e., Industrial Investment and Summit Securities go up and down completely randomly.
Pair Corralation between Industrial Investment and Summit Securities
Assuming the 90 days trading horizon Industrial Investment Trust is expected to generate 0.62 times more return on investment than Summit Securities. However, Industrial Investment Trust is 1.61 times less risky than Summit Securities. It trades about 0.43 of its potential returns per unit of risk. Summit Securities Limited is currently generating about -0.47 per unit of risk. If you would invest 32,400 in Industrial Investment Trust on November 6, 2024 and sell it today you would earn a total of 7,550 from holding Industrial Investment Trust or generate 23.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Investment Trust vs. Summit Securities Limited
Performance |
| Timeline |
| Industrial Investment |
| Summit Securities |
Industrial Investment and Summit Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Investment and Summit Securities
The main advantage of trading using opposite Industrial Investment and Summit Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Investment position performs unexpectedly, Summit Securities 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 Summit Securities will offset losses from the drop in Summit Securities' long position.| Industrial Investment vs. The Byke Hospitality | Industrial Investment vs. Blue Jet Healthcare | Industrial Investment vs. Lotus Eye Hospital | Industrial Investment vs. Tata Steel Limited |
| Summit Securities vs. Iris Clothings Limited | Summit Securities vs. Juniper Hotels | Summit Securities vs. V2 Retail Limited | Summit Securities vs. Kamat Hotels 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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