Correlation Between India Glycols and Digjam
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By analyzing existing cross correlation between India Glycols Limited and Digjam Limited, you can compare the effects of market volatilities on India Glycols and Digjam 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 India Glycols with a short position of Digjam. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Glycols and Digjam.
Diversification Opportunities for India Glycols and Digjam
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between India and Digjam is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding India Glycols Limited and Digjam Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digjam Limited and India Glycols 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 India Glycols Limited are associated (or correlated) with Digjam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digjam Limited has no effect on the direction of India Glycols i.e., India Glycols and Digjam go up and down completely randomly.
Pair Corralation between India Glycols and Digjam
Assuming the 90 days trading horizon India Glycols Limited is expected to generate 1.19 times more return on investment than Digjam. However, India Glycols is 1.19 times more volatile than Digjam Limited. It trades about 0.11 of its potential returns per unit of risk. Digjam Limited is currently generating about -0.01 per unit of risk. If you would invest 119,840 in India Glycols Limited on September 1, 2024 and sell it today you would earn a total of 7,755 from holding India Glycols Limited or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
India Glycols Limited vs. Digjam Limited
Performance |
| Timeline |
| India Glycols Limited |
| Digjam Limited |
India Glycols and Digjam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with India Glycols and Digjam
The main advantage of trading using opposite India Glycols and Digjam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if India Glycols position performs unexpectedly, Digjam 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 Digjam will offset losses from the drop in Digjam's long position.| India Glycols vs. NMDC Limited | India Glycols vs. Steel Authority of | India Glycols vs. Embassy Office Parks | India Glycols vs. Gujarat Narmada Valley |
| Digjam vs. Reliance Industrial Infrastructure | Digjam vs. LT Technology Services | Digjam vs. Shyam Metalics and | Digjam vs. LLOYDS METALS AND |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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