Correlation Between MRF and Fino Payments
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By analyzing existing cross correlation between MRF Limited and Fino Payments Bank, you can compare the effects of market volatilities on MRF and Fino Payments 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 Fino Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Fino Payments.
Diversification Opportunities for MRF and Fino Payments
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MRF and Fino is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Fino Payments Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fino Payments Bank 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 Fino Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fino Payments Bank has no effect on the direction of MRF i.e., MRF and Fino Payments go up and down completely randomly.
Pair Corralation between MRF and Fino Payments
Assuming the 90 days trading horizon MRF Limited is expected to generate 0.26 times more return on investment than Fino Payments. However, MRF Limited is 3.9 times less risky than Fino Payments. It trades about -0.12 of its potential returns per unit of risk. Fino Payments Bank is currently generating about -0.24 per unit of risk. If you would invest 11,125,600 in MRF Limited on November 27, 2024 and sell it today you would lose (241,400) from holding MRF Limited or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Fino Payments Bank
Performance |
| Timeline |
| MRF Limited |
| Fino Payments Bank |
MRF and Fino Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Fino Payments
The main advantage of trading using opposite MRF and Fino Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Fino Payments 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 Fino Payments will offset losses from the drop in Fino Payments' long position.| MRF vs. TVS Electronics Limited | MRF vs. Nucleus Software Exports | MRF vs. MIC Electronics Limited | MRF vs. Modi Rubber Limited |
| Fino Payments vs. Gokul Refoils and | Fino Payments vs. Hilton Metal Forging | Fino Payments vs. Hisar Metal Industries | Fino Payments vs. Transport of |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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