Correlation Between Max Financial and AVALON TECHNOLOGIES
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By analyzing existing cross correlation between Max Financial Services and AVALON TECHNOLOGIES LTD, you can compare the effects of market volatilities on Max Financial and AVALON TECHNOLOGIES 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 Max Financial with a short position of AVALON TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and AVALON TECHNOLOGIES.
Diversification Opportunities for Max Financial and AVALON TECHNOLOGIES
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Max and AVALON is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and AVALON TECHNOLOGIES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVALON TECHNOLOGIES LTD and Max Financial 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 Max Financial Services are associated (or correlated) with AVALON TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVALON TECHNOLOGIES LTD has no effect on the direction of Max Financial i.e., Max Financial and AVALON TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Max Financial and AVALON TECHNOLOGIES
Assuming the 90 days trading horizon Max Financial is expected to generate 2.22 times less return on investment than AVALON TECHNOLOGIES. But when comparing it to its historical volatility, Max Financial Services is 1.53 times less risky than AVALON TECHNOLOGIES. It trades about 0.06 of its potential returns per unit of risk. AVALON TECHNOLOGIES LTD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 39,800 in AVALON TECHNOLOGIES LTD on September 4, 2024 and sell it today you would earn a total of 51,845 from holding AVALON TECHNOLOGIES LTD or generate 130.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.45% |
| Values | Daily Returns |
Max Financial Services vs. AVALON TECHNOLOGIES LTD
Performance |
| Timeline |
| Max Financial Services |
| AVALON TECHNOLOGIES LTD |
Max Financial and AVALON TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and AVALON TECHNOLOGIES
The main advantage of trading using opposite Max Financial and AVALON TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, AVALON TECHNOLOGIES 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 AVALON TECHNOLOGIES will offset losses from the drop in AVALON TECHNOLOGIES's long position.| Max Financial vs. AVALON TECHNOLOGIES LTD | Max Financial vs. ADF Foods Limited | Max Financial vs. Agro Tech Foods | Max Financial vs. Newgen Software Technologies |
| AVALON TECHNOLOGIES vs. Sunflag Iron And | AVALON TECHNOLOGIES vs. Vardhman Special Steels | AVALON TECHNOLOGIES vs. SBI Life Insurance | AVALON TECHNOLOGIES vs. SAL Steel 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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