Correlation Between Iris Clothings and Emkay Global
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By analyzing existing cross correlation between Iris Clothings Limited and Emkay Global Financial, you can compare the effects of market volatilities on Iris Clothings and Emkay Global 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 Iris Clothings with a short position of Emkay Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Clothings and Emkay Global.
Diversification Opportunities for Iris Clothings and Emkay Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iris and Emkay is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Iris Clothings Limited and Emkay Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emkay Global Financial and Iris Clothings 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 Iris Clothings Limited are associated (or correlated) with Emkay Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emkay Global Financial has no effect on the direction of Iris Clothings i.e., Iris Clothings and Emkay Global go up and down completely randomly.
Pair Corralation between Iris Clothings and Emkay Global
Assuming the 90 days trading horizon Iris Clothings Limited is expected to generate 0.55 times more return on investment than Emkay Global. However, Iris Clothings Limited is 1.81 times less risky than Emkay Global. It trades about -0.13 of its potential returns per unit of risk. Emkay Global Financial is currently generating about -0.44 per unit of risk. If you would invest 6,156 in Iris Clothings Limited on November 7, 2024 and sell it today you would lose (345.00) from holding Iris Clothings Limited or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iris Clothings Limited vs. Emkay Global Financial
Performance |
| Timeline |
| Iris Clothings |
| Emkay Global Financial |
Iris Clothings and Emkay Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iris Clothings and Emkay Global
The main advantage of trading using opposite Iris Clothings and Emkay Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Clothings position performs unexpectedly, Emkay Global 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 Emkay Global will offset losses from the drop in Emkay Global's long position.| Iris Clothings vs. Dev Information Technology | Iris Clothings vs. UTI Asset Management | Iris Clothings vs. Hindustan Construction | Iris Clothings vs. Cambridge Technology Enterprises |
| Emkay Global vs. Reliance Industries Limited | Emkay Global vs. Oil Natural Gas | Emkay Global vs. ICICI Bank Limited | Emkay Global vs. Bharti Airtel Limited |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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