Correlation Between MRF and Cyient
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By analyzing existing cross correlation between MRF Limited and Cyient Limited, you can compare the effects of market volatilities on MRF and Cyient 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 Cyient. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Cyient.
Diversification Opportunities for MRF and Cyient
Poor diversification
The 3 months correlation between MRF and Cyient is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Cyient Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyient Limited 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 Cyient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyient Limited has no effect on the direction of MRF i.e., MRF and Cyient go up and down completely randomly.
Pair Corralation between MRF and Cyient
If you would invest 218,982 in Cyient Limited on September 12, 2024 and sell it today you would lose (10,307) from holding Cyient Limited or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.41% |
| Values | Daily Returns |
MRF Limited vs. Cyient Limited
Performance |
| Timeline |
| MRF Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cyient Limited |
MRF and Cyient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Cyient
The main advantage of trading using opposite MRF and Cyient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Cyient 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 Cyient will offset losses from the drop in Cyient's long position.| MRF vs. Bajaj Holdings Investment | MRF vs. The Investment Trust | MRF vs. POWERGRID Infrastructure Investment | MRF vs. Jindal Poly Investment |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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