Correlation Between Indian Metals and Indo Amines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Indian Metals Ferro and Indo Amines Limited, you can compare the effects of market volatilities on Indian Metals and Indo Amines 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 Indo Amines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Metals and Indo Amines.
Diversification Opportunities for Indian Metals and Indo Amines
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indian and Indo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Indian Metals Ferro and Indo Amines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Amines 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 Indo Amines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Amines Limited has no effect on the direction of Indian Metals i.e., Indian Metals and Indo Amines go up and down completely randomly.
Pair Corralation between Indian Metals and Indo Amines
Assuming the 90 days trading horizon Indian Metals Ferro is expected to generate 0.95 times more return on investment than Indo Amines. However, Indian Metals Ferro is 1.06 times less risky than Indo Amines. It trades about 0.43 of its potential returns per unit of risk. Indo Amines Limited is currently generating about 0.04 per unit of risk. If you would invest 64,312 in Indian Metals Ferro on August 28, 2024 and sell it today you would earn a total of 17,293 from holding Indian Metals Ferro or generate 26.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Indian Metals Ferro vs. Indo Amines Limited
Performance |
| Timeline |
| Indian Metals Ferro |
| Indo Amines Limited |
Indian Metals and Indo Amines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Metals and Indo Amines
The main advantage of trading using opposite Indian Metals and Indo Amines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Metals position performs unexpectedly, Indo Amines 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 Indo Amines will offset losses from the drop in Indo Amines' long position.| Indian Metals vs. NMDC Limited | Indian Metals vs. Steel Authority of | Indian Metals vs. Embassy Office Parks | Indian Metals vs. Gujarat Narmada Valley |
| Indo Amines vs. NMDC Limited | Indo Amines vs. Steel Authority of | Indo Amines vs. Embassy Office Parks | Indo Amines vs. Gujarat Narmada Valley |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |