Correlation Between ITI and Exide Industries
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By analyzing existing cross correlation between ITI Limited and Exide Industries Limited, you can compare the effects of market volatilities on ITI 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 ITI with a short position of Exide Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITI and Exide Industries.
Diversification Opportunities for ITI and Exide Industries
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ITI and Exide is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ITI 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 ITI 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 ITI 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 ITI i.e., ITI and Exide Industries go up and down completely randomly.
Pair Corralation between ITI and Exide Industries
Assuming the 90 days trading horizon ITI is expected to generate 4.54 times less return on investment than Exide Industries. In addition to that, ITI is 1.43 times more volatile than Exide Industries Limited. It trades about 0.01 of its total potential returns per unit of risk. Exide Industries Limited is currently generating about 0.08 per unit of volatility. If you would invest 29,376 in Exide Industries Limited on September 2, 2024 and sell it today you would earn a total of 15,884 from holding Exide Industries Limited or generate 54.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
ITI Limited vs. Exide Industries Limited
Performance |
| Timeline |
| ITI Limited |
| Exide Industries |
ITI and Exide Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITI and Exide Industries
The main advantage of trading using opposite ITI and Exide Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITI 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.| ITI vs. Tata Communications Limited | ITI vs. Embassy Office Parks | ITI vs. Dev Information Technology | ITI vs. Repco Home Finance |
| Exide Industries vs. Embassy Office Parks | Exide Industries vs. HDFC Asset Management | Exide Industries vs. Zee Entertainment Enterprises | Exide Industries vs. UTI Asset Management |
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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