Correlation Between Manaksia Steels and 20 Microns
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By analyzing existing cross correlation between Manaksia Steels Limited and 20 Microns Limited, you can compare the effects of market volatilities on Manaksia Steels and 20 Microns 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 Manaksia Steels with a short position of 20 Microns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Steels and 20 Microns.
Diversification Opportunities for Manaksia Steels and 20 Microns
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manaksia and 20MICRONS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Steels Limited and 20 Microns Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 20 Microns Limited and Manaksia Steels 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 Manaksia Steels Limited are associated (or correlated) with 20 Microns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 20 Microns Limited has no effect on the direction of Manaksia Steels i.e., Manaksia Steels and 20 Microns go up and down completely randomly.
Pair Corralation between Manaksia Steels and 20 Microns
Assuming the 90 days trading horizon Manaksia Steels is expected to generate 1.31 times less return on investment than 20 Microns. In addition to that, Manaksia Steels is 1.16 times more volatile than 20 Microns Limited. It trades about 0.05 of its total potential returns per unit of risk. 20 Microns Limited is currently generating about 0.07 per unit of volatility. If you would invest 9,703 in 20 Microns Limited on September 3, 2024 and sell it today you would earn a total of 13,652 from holding 20 Microns Limited or generate 140.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Manaksia Steels Limited vs. 20 Microns Limited
Performance |
| Timeline |
| Manaksia Steels |
| 20 Microns Limited |
Manaksia Steels and 20 Microns Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manaksia Steels and 20 Microns
The main advantage of trading using opposite Manaksia Steels and 20 Microns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Steels position performs unexpectedly, 20 Microns 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 20 Microns will offset losses from the drop in 20 Microns' long position.| Manaksia Steels vs. Touchwood Entertainment Limited | Manaksia Steels vs. Sambhaav Media Limited | Manaksia Steels vs. Pritish Nandy Communications | Manaksia Steels vs. Reliance Communications Limited |
| 20 Microns vs. NMDC Limited | 20 Microns vs. Steel Authority of | 20 Microns vs. Embassy Office Parks | 20 Microns vs. Indian Metals Ferro |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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