Correlation Between Megastar Foods and Sportking India
Specify exactly 2 symbols:
By analyzing existing cross correlation between Megastar Foods Limited and Sportking India Limited, you can compare the effects of market volatilities on Megastar Foods and Sportking India 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 Sportking India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megastar Foods and Sportking India.
Diversification Opportunities for Megastar Foods and Sportking India
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Megastar and Sportking is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Megastar Foods Limited and Sportking India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportking India 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 Sportking India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportking India has no effect on the direction of Megastar Foods i.e., Megastar Foods and Sportking India go up and down completely randomly.
Pair Corralation between Megastar Foods and Sportking India
Assuming the 90 days trading horizon Megastar Foods Limited is expected to generate 1.57 times more return on investment than Sportking India. However, Megastar Foods is 1.57 times more volatile than Sportking India Limited. It trades about 0.16 of its potential returns per unit of risk. Sportking India Limited is currently generating about -0.17 per unit of risk. If you would invest 22,876 in Megastar Foods Limited on October 20, 2024 and sell it today you would earn a total of 3,340 from holding Megastar Foods Limited or generate 14.6% 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. Sportking India Limited
Performance |
| Timeline |
| Megastar Foods |
| Sportking India |
Megastar Foods and Sportking India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megastar Foods and Sportking India
The main advantage of trading using opposite Megastar Foods and Sportking India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megastar Foods position performs unexpectedly, Sportking India 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 Sportking India will offset losses from the drop in Sportking India's long position.| Megastar Foods vs. Univa Foods Limited | Megastar Foods vs. LT Foods Limited | Megastar Foods vs. Laxmi Organic Industries | Megastar Foods vs. Osia Hyper Retail |
| Sportking India vs. GM Breweries Limited | Sportking India vs. Can Fin Homes | Sportking India vs. Associated Alcohols Breweries | Sportking India vs. Datamatics Global Services |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |