Correlation Between Maharashtra Scooters and Sterling
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By analyzing existing cross correlation between Maharashtra Scooters Limited and Sterling and Wilson, you can compare the effects of market volatilities on Maharashtra Scooters and Sterling 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 Maharashtra Scooters with a short position of Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maharashtra Scooters and Sterling.
Diversification Opportunities for Maharashtra Scooters and Sterling
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maharashtra and Sterling is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Maharashtra Scooters Limited and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson and Maharashtra Scooters 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 Maharashtra Scooters Limited are associated (or correlated) with Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of Maharashtra Scooters i.e., Maharashtra Scooters and Sterling go up and down completely randomly.
Pair Corralation between Maharashtra Scooters and Sterling
Assuming the 90 days trading horizon Maharashtra Scooters Limited is expected to generate 0.66 times more return on investment than Sterling. However, Maharashtra Scooters Limited is 1.52 times less risky than Sterling. It trades about 0.05 of its potential returns per unit of risk. Sterling and Wilson is currently generating about -0.07 per unit of risk. If you would invest 748,587 in Maharashtra Scooters Limited on November 5, 2024 and sell it today you would earn a total of 182,498 from holding Maharashtra Scooters Limited or generate 24.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Maharashtra Scooters Limited vs. Sterling and Wilson
Performance |
| Timeline |
| Maharashtra Scooters |
| Sterling and Wilson |
Maharashtra Scooters and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maharashtra Scooters and Sterling
The main advantage of trading using opposite Maharashtra Scooters and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maharashtra Scooters position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| Maharashtra Scooters vs. Jindal Steel Power | Maharashtra Scooters vs. SAL Steel Limited | Maharashtra Scooters vs. Diligent Media | Maharashtra Scooters vs. Tata Steel Limited |
| Sterling vs. Radaan Mediaworks India | Sterling vs. Jaypee Infratech Limited | Sterling vs. Shemaroo Entertainment Limited | Sterling vs. Hathway Cable Datacom |
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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