Correlation Between Indo Amines and Exide Industries
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By analyzing existing cross correlation between Indo Amines Limited and Exide Industries Limited, you can compare the effects of market volatilities on Indo Amines and Exide Industries 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 Indo Amines with a short position of Exide Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Amines and Exide Industries.
Diversification Opportunities for Indo Amines and Exide Industries
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indo and Exide is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Indo Amines Limited and Exide Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exide Industries and Indo Amines 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 Indo Amines Limited are associated (or correlated) with Exide Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exide Industries has no effect on the direction of Indo Amines i.e., Indo Amines and Exide Industries go up and down completely randomly.
Pair Corralation between Indo Amines and Exide Industries
Assuming the 90 days trading horizon Indo Amines Limited is expected to generate 2.02 times more return on investment than Exide Industries. However, Indo Amines is 2.02 times more volatile than Exide Industries Limited. It trades about 0.25 of its potential returns per unit of risk. Exide Industries Limited is currently generating about 0.1 per unit of risk. If you would invest 11,501 in Indo Amines Limited on January 27, 2025 and sell it today you would earn a total of 1,758 from holding Indo Amines Limited or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Amines Limited vs. Exide Industries Limited
Performance |
| Timeline |
| Indo Amines Limited |
| Exide Industries |
Indo Amines and Exide Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Amines and Exide Industries
The main advantage of trading using opposite Indo Amines and Exide Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Amines position performs unexpectedly, Exide Industries 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 Exide Industries will offset losses from the drop in Exide Industries' long position.| Indo Amines vs. Arman Financial Services | Indo Amines vs. DCB Bank Limited | Indo Amines vs. ICICI Bank Limited | Indo Amines vs. Kotak Mahindra Bank |
| Exide Industries vs. Bharatiya Global Infomedia | Exide Industries vs. Global Education Limited | Exide Industries vs. Bigbloc Construction Limited | Exide Industries vs. Radaan Mediaworks India |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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