Correlation Between ILFS Investment and Agarwal Industrial
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By analyzing existing cross correlation between ILFS Investment Managers and Agarwal Industrial, you can compare the effects of market volatilities on ILFS Investment and Agarwal Industrial 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 ILFS Investment with a short position of Agarwal Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ILFS Investment and Agarwal Industrial.
Diversification Opportunities for ILFS Investment and Agarwal Industrial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ILFS and Agarwal is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ILFS Investment Managers and Agarwal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agarwal Industrial and ILFS Investment 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 ILFS Investment Managers are associated (or correlated) with Agarwal Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agarwal Industrial has no effect on the direction of ILFS Investment i.e., ILFS Investment and Agarwal Industrial go up and down completely randomly.
Pair Corralation between ILFS Investment and Agarwal Industrial
Assuming the 90 days trading horizon ILFS Investment Managers is expected to under-perform the Agarwal Industrial. But the stock apears to be less risky and, when comparing its historical volatility, ILFS Investment Managers is 1.37 times less risky than Agarwal Industrial. The stock trades about -0.16 of its potential returns per unit of risk. The Agarwal Industrial is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 107,125 in Agarwal Industrial on September 3, 2024 and sell it today you would earn a total of 11,805 from holding Agarwal Industrial or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ILFS Investment Managers vs. Agarwal Industrial
Performance |
| Timeline |
| ILFS Investment Managers |
| Agarwal Industrial |
ILFS Investment and Agarwal Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ILFS Investment and Agarwal Industrial
The main advantage of trading using opposite ILFS Investment and Agarwal Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ILFS Investment position performs unexpectedly, Agarwal Industrial 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 Agarwal Industrial will offset losses from the drop in Agarwal Industrial's long position.| ILFS Investment vs. Nalwa Sons Investments | ILFS Investment vs. Radaan Mediaworks India | ILFS Investment vs. Akums Drugs and | ILFS Investment vs. Beta Drugs |
| Agarwal Industrial vs. NMDC Limited | Agarwal Industrial vs. Steel Authority of | Agarwal Industrial vs. Indian Metals Ferro | Agarwal Industrial vs. JTL Industries |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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