Correlation Between Manaksia Steels and Whirlpool
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By analyzing existing cross correlation between Manaksia Steels Limited and Whirlpool of India, you can compare the effects of market volatilities on Manaksia Steels and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Steels and Whirlpool.
Diversification Opportunities for Manaksia Steels and Whirlpool
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manaksia and Whirlpool is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Steels Limited and Whirlpool of India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool of India 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool of India has no effect on the direction of Manaksia Steels i.e., Manaksia Steels and Whirlpool go up and down completely randomly.
Pair Corralation between Manaksia Steels and Whirlpool
Assuming the 90 days trading horizon Manaksia Steels is expected to generate 1.78 times less return on investment than Whirlpool. In addition to that, Manaksia Steels is 1.3 times more volatile than Whirlpool of India. It trades about 0.09 of its total potential returns per unit of risk. Whirlpool of India is currently generating about 0.21 per unit of volatility. If you would invest 179,450 in Whirlpool of India on September 13, 2024 and sell it today you would earn a total of 14,245 from holding Whirlpool of India or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manaksia Steels Limited vs. Whirlpool of India
Performance |
| Timeline |
| Manaksia Steels |
| Whirlpool of India |
Manaksia Steels and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manaksia Steels and Whirlpool
The main advantage of trading using opposite Manaksia Steels and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Steels position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| Manaksia Steels vs. NMDC Limited | Manaksia Steels vs. Steel Authority of | Manaksia Steels vs. Embassy Office Parks | Manaksia Steels vs. Gujarat Narmada Valley |
| Whirlpool vs. HDFC Asset Management | Whirlpool vs. Hindustan Media Ventures | Whirlpool vs. Visa Steel Limited | Whirlpool vs. Manaksia Steels 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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