Correlation Between MRF and Electrosteel Castings
Specify exactly 2 symbols:
By analyzing existing cross correlation between MRF Limited and Electrosteel Castings Limited, you can compare the effects of market volatilities on MRF and Electrosteel Castings 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 Electrosteel Castings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Electrosteel Castings.
Diversification Opportunities for MRF and Electrosteel Castings
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MRF and Electrosteel is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Electrosteel Castings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrosteel Castings 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 Electrosteel Castings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrosteel Castings has no effect on the direction of MRF i.e., MRF and Electrosteel Castings go up and down completely randomly.
Pair Corralation between MRF and Electrosteel Castings
Assuming the 90 days trading horizon MRF is expected to generate 5.58 times less return on investment than Electrosteel Castings. But when comparing it to its historical volatility, MRF Limited is 2.55 times less risky than Electrosteel Castings. It trades about 0.05 of its potential returns per unit of risk. Electrosteel Castings Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,468 in Electrosteel Castings Limited on November 1, 2024 and sell it today you would earn a total of 8,872 from holding Electrosteel Castings Limited or generate 255.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
MRF Limited vs. Electrosteel Castings Limited
Performance |
| Timeline |
| MRF Limited |
| Electrosteel Castings |
MRF and Electrosteel Castings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Electrosteel Castings
The main advantage of trading using opposite MRF and Electrosteel Castings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Electrosteel Castings 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 Electrosteel Castings will offset losses from the drop in Electrosteel Castings' long position.| MRF vs. Electrosteel Castings Limited | MRF vs. Bikaji Foods International | MRF vs. Foods Inns Limited | MRF vs. Bharat Road Network |
| Electrosteel Castings vs. Yatra Online Limited | Electrosteel Castings vs. Fortis Healthcare Limited | Electrosteel Castings vs. Global Health Limited | Electrosteel Castings vs. Max Healthcare Institute |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |