Correlation Between Indian Metals and GM Breweries
Specify exactly 2 symbols:
By analyzing existing cross correlation between Indian Metals Ferro and GM Breweries Limited, you can compare the effects of market volatilities on Indian Metals and GM Breweries 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 Indian Metals with a short position of GM Breweries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Metals and GM Breweries.
Diversification Opportunities for Indian Metals and GM Breweries
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Indian and GMBREW is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Indian Metals Ferro and GM Breweries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM Breweries Limited and Indian Metals 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 Indian Metals Ferro are associated (or correlated) with GM Breweries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM Breweries Limited has no effect on the direction of Indian Metals i.e., Indian Metals and GM Breweries go up and down completely randomly.
Pair Corralation between Indian Metals and GM Breweries
Assuming the 90 days trading horizon Indian Metals Ferro is expected to generate 0.81 times more return on investment than GM Breweries. However, Indian Metals Ferro is 1.23 times less risky than GM Breweries. It trades about 0.1 of its potential returns per unit of risk. GM Breweries Limited is currently generating about 0.05 per unit of risk. If you would invest 26,124 in Indian Metals Ferro on September 3, 2024 and sell it today you would earn a total of 58,091 from holding Indian Metals Ferro or generate 222.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indian Metals Ferro vs. GM Breweries Limited
Performance |
| Timeline |
| Indian Metals Ferro |
| GM Breweries Limited |
Indian Metals and GM Breweries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Metals and GM Breweries
The main advantage of trading using opposite Indian Metals and GM Breweries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Metals position performs unexpectedly, GM Breweries 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 GM Breweries will offset losses from the drop in GM Breweries' long position.The idea behind Indian Metals Ferro and GM Breweries Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GM Breweries vs. Styrenix Performance Materials | GM Breweries vs. Newgen Software Technologies | GM Breweries vs. One 97 Communications | GM Breweries vs. Sintex Plastics Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |