Correlation Between MIC Electronics and Hexa Tradex
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By analyzing existing cross correlation between MIC Electronics Limited and Hexa Tradex Limited, you can compare the effects of market volatilities on MIC Electronics and Hexa Tradex 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 MIC Electronics with a short position of Hexa Tradex. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIC Electronics and Hexa Tradex.
Diversification Opportunities for MIC Electronics and Hexa Tradex
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MIC and Hexa is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MIC Electronics Limited and Hexa Tradex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexa Tradex Limited and MIC Electronics 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 MIC Electronics Limited are associated (or correlated) with Hexa Tradex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexa Tradex Limited has no effect on the direction of MIC Electronics i.e., MIC Electronics and Hexa Tradex go up and down completely randomly.
Pair Corralation between MIC Electronics and Hexa Tradex
Assuming the 90 days trading horizon MIC Electronics Limited is expected to generate 0.9 times more return on investment than Hexa Tradex. However, MIC Electronics Limited is 1.11 times less risky than Hexa Tradex. It trades about -0.18 of its potential returns per unit of risk. Hexa Tradex Limited is currently generating about -0.41 per unit of risk. If you would invest 9,039 in MIC Electronics Limited on October 12, 2024 and sell it today you would lose (719.00) from holding MIC Electronics Limited or give up 7.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIC Electronics Limited vs. Hexa Tradex Limited
Performance |
| Timeline |
| MIC Electronics |
| Hexa Tradex Limited |
MIC Electronics and Hexa Tradex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIC Electronics and Hexa Tradex
The main advantage of trading using opposite MIC Electronics and Hexa Tradex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIC Electronics position performs unexpectedly, Hexa Tradex 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 Hexa Tradex will offset losses from the drop in Hexa Tradex's long position.| MIC Electronics vs. Radaan Mediaworks India | MIC Electronics vs. Network18 Media Investments | MIC Electronics vs. Silly Monks Entertainment | MIC Electronics vs. Coffee Day Enterprises |
| Hexa Tradex vs. MIC Electronics Limited | Hexa Tradex vs. Future Retail Limited | Hexa Tradex vs. Manaksia Coated Metals | Hexa Tradex vs. Centum Electronics 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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