Correlation Between Indian Metals and Investment Trust
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By analyzing existing cross correlation between Indian Metals Ferro and The Investment Trust, you can compare the effects of market volatilities on Indian Metals and Investment Trust 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 Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Metals and Investment Trust.
Diversification Opportunities for Indian Metals and Investment Trust
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indian and Investment is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Indian Metals Ferro and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust 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 Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Indian Metals i.e., Indian Metals and Investment Trust go up and down completely randomly.
Pair Corralation between Indian Metals and Investment Trust
Assuming the 90 days trading horizon Indian Metals Ferro is expected to generate 1.03 times more return on investment than Investment Trust. However, Indian Metals is 1.03 times more volatile than The Investment Trust. It trades about 0.1 of its potential returns per unit of risk. The Investment Trust is currently generating about 0.07 per unit of risk. If you would invest 27,715 in Indian Metals Ferro on October 11, 2024 and sell it today you would earn a total of 62,210 from holding Indian Metals Ferro or generate 224.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indian Metals Ferro vs. The Investment Trust
Performance |
| Timeline |
| Indian Metals Ferro |
| Investment Trust |
Indian Metals and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Metals and Investment Trust
The main advantage of trading using opposite Indian Metals and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Metals position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Indian Metals vs. Iris Clothings Limited | Indian Metals vs. LT Foods Limited | Indian Metals vs. ADF Foods Limited | Indian Metals vs. Fine Organic Industries |
| Investment Trust vs. Reliance Communications Limited | Investment Trust vs. Indian Metals Ferro | Investment Trust vs. Shyam Metalics and | Investment Trust vs. One 97 Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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