Correlation Between India Glycols and Sasken Technologies
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By analyzing existing cross correlation between India Glycols Limited and Sasken Technologies Limited, you can compare the effects of market volatilities on India Glycols and Sasken Technologies 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 Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Glycols and Sasken Technologies.
Diversification Opportunities for India Glycols and Sasken Technologies
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between India and Sasken is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding India Glycols Limited and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies 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 Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of India Glycols i.e., India Glycols and Sasken Technologies go up and down completely randomly.
Pair Corralation between India Glycols and Sasken Technologies
Assuming the 90 days trading horizon India Glycols is expected to generate 1.06 times less return on investment than Sasken Technologies. But when comparing it to its historical volatility, India Glycols Limited is 1.01 times less risky than Sasken Technologies. It trades about 0.09 of its potential returns per unit of risk. Sasken Technologies Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 115,611 in Sasken Technologies Limited on September 1, 2024 and sell it today you would earn a total of 103,359 from holding Sasken Technologies Limited or generate 89.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
India Glycols Limited vs. Sasken Technologies Limited
Performance |
| Timeline |
| India Glycols Limited |
| Sasken Technologies |
India Glycols and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with India Glycols and Sasken Technologies
The main advantage of trading using opposite India Glycols and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if India Glycols position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' 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 |
| Sasken Technologies vs. DJ Mediaprint Logistics | Sasken Technologies vs. Touchwood Entertainment Limited | Sasken Technologies vs. Chalet Hotels Limited | Sasken Technologies vs. Juniper Hotels |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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