Correlation Between MIRC Electronics and Industrial Investment
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By analyzing existing cross correlation between MIRC Electronics Limited and Industrial Investment Trust, you can compare the effects of market volatilities on MIRC Electronics and Industrial Investment 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 MIRC Electronics with a short position of Industrial Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRC Electronics and Industrial Investment.
Diversification Opportunities for MIRC Electronics and Industrial Investment
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRC and Industrial is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding MIRC Electronics Limited and Industrial Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Investment and MIRC 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 MIRC Electronics Limited are associated (or correlated) with Industrial Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Investment has no effect on the direction of MIRC Electronics i.e., MIRC Electronics and Industrial Investment go up and down completely randomly.
Pair Corralation between MIRC Electronics and Industrial Investment
Assuming the 90 days trading horizon MIRC Electronics is expected to generate 2.31 times less return on investment than Industrial Investment. In addition to that, MIRC Electronics is 1.1 times more volatile than Industrial Investment Trust. It trades about 0.03 of its total potential returns per unit of risk. Industrial Investment Trust is currently generating about 0.09 per unit of volatility. If you would invest 10,525 in Industrial Investment Trust on October 13, 2024 and sell it today you would earn a total of 22,175 from holding Industrial Investment Trust or generate 210.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
MIRC Electronics Limited vs. Industrial Investment Trust
Performance |
| Timeline |
| MIRC Electronics |
| Industrial Investment |
MIRC Electronics and Industrial Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRC Electronics and Industrial Investment
The main advantage of trading using opposite MIRC Electronics and Industrial Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRC Electronics position performs unexpectedly, Industrial Investment 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 Industrial Investment will offset losses from the drop in Industrial Investment's long position.| MIRC Electronics vs. HT Media Limited | MIRC Electronics vs. Zee Entertainment Enterprises | MIRC Electronics vs. Sakar Healthcare Limited | MIRC Electronics vs. Lotus Eye Hospital |
| Industrial Investment vs. MIRC Electronics Limited | Industrial Investment vs. Manaksia Coated Metals | Industrial Investment vs. HDFC Asset Management | Industrial Investment vs. Home First Finance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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