Correlation Between MRF and Aster DM
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By analyzing existing cross correlation between MRF Limited and Aster DM Healthcare, you can compare the effects of market volatilities on MRF and Aster DM 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 MRF with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Aster DM.
Diversification Opportunities for MRF and Aster DM
Very weak diversification
The 3 months correlation between MRF and Aster is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Aster DM Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aster DM Healthcare and MRF 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 MRF Limited are associated (or correlated) with Aster DM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aster DM Healthcare has no effect on the direction of MRF i.e., MRF and Aster DM go up and down completely randomly.
Pair Corralation between MRF and Aster DM
Assuming the 90 days trading horizon MRF Limited is expected to generate 0.4 times more return on investment than Aster DM. However, MRF Limited is 2.48 times less risky than Aster DM. It trades about -0.18 of its potential returns per unit of risk. Aster DM Healthcare is currently generating about -0.32 per unit of risk. If you would invest 11,125,600 in MRF Limited on November 28, 2024 and sell it today you would lose (405,200) from holding MRF Limited or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Aster DM Healthcare
Performance |
| Timeline |
| MRF Limited |
| Aster DM Healthcare |
MRF and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Aster DM
The main advantage of trading using opposite MRF and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Aster DM 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 Aster DM will offset losses from the drop in Aster DM's long position.| MRF vs. Bank of Maharashtra | MRF vs. HDFC Life Insurance | MRF vs. Hybrid Financial Services | MRF vs. Sarveshwar Foods Limited |
| Aster DM vs. Navneet Education Limited | Aster DM vs. Vertoz Advertising Limited | Aster DM vs. Tree House Education | Aster DM vs. Yatra Online 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 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.
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