Correlation Between Megastar Foods and Repco Home
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By analyzing existing cross correlation between Megastar Foods Limited and Repco Home Finance, you can compare the effects of market volatilities on Megastar Foods and Repco Home 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 Megastar Foods with a short position of Repco Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megastar Foods and Repco Home.
Diversification Opportunities for Megastar Foods and Repco Home
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Megastar and Repco is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Megastar Foods Limited and Repco Home Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repco Home Finance and Megastar Foods 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 Megastar Foods Limited are associated (or correlated) with Repco Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repco Home Finance has no effect on the direction of Megastar Foods i.e., Megastar Foods and Repco Home go up and down completely randomly.
Pair Corralation between Megastar Foods and Repco Home
Assuming the 90 days trading horizon Megastar Foods Limited is expected to generate 1.93 times more return on investment than Repco Home. However, Megastar Foods is 1.93 times more volatile than Repco Home Finance. It trades about 0.11 of its potential returns per unit of risk. Repco Home Finance is currently generating about -0.27 per unit of risk. If you would invest 23,599 in Megastar Foods Limited on October 16, 2024 and sell it today you would earn a total of 1,996 from holding Megastar Foods Limited or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Megastar Foods Limited vs. Repco Home Finance
Performance |
| Timeline |
| Megastar Foods |
| Repco Home Finance |
Megastar Foods and Repco Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megastar Foods and Repco Home
The main advantage of trading using opposite Megastar Foods and Repco Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megastar Foods position performs unexpectedly, Repco Home 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 Repco Home will offset losses from the drop in Repco Home's long position.| Megastar Foods vs. Bharatiya Global Infomedia | Megastar Foods vs. Radaan Mediaworks India | Megastar Foods vs. Cholamandalam Investment and | Megastar Foods vs. Industrial Investment Trust |
| Repco Home vs. Thirumalai Chemicals Limited | Repco Home vs. IOL Chemicals and | Repco Home vs. The Hi Tech Gears | Repco Home vs. Tata Communications 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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