Correlation Between MRF and Summit Securities
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By analyzing existing cross correlation between MRF Limited and Summit Securities Limited, you can compare the effects of market volatilities on MRF and Summit Securities 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 Summit Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Summit Securities.
Diversification Opportunities for MRF and Summit Securities
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MRF and Summit is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Summit Securities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Securities 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 Summit Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Securities has no effect on the direction of MRF i.e., MRF and Summit Securities go up and down completely randomly.
Pair Corralation between MRF and Summit Securities
Assuming the 90 days trading horizon MRF is expected to generate 16.24 times less return on investment than Summit Securities. But when comparing it to its historical volatility, MRF Limited is 4.04 times less risky than Summit Securities. It trades about 0.06 of its potential returns per unit of risk. Summit Securities Limited is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 264,225 in Summit Securities Limited on August 27, 2024 and sell it today you would earn a total of 57,515 from holding Summit Securities Limited or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Summit Securities Limited
Performance |
| Timeline |
| MRF Limited |
| Summit Securities |
MRF and Summit Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Summit Securities
The main advantage of trading using opposite MRF and Summit Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Summit Securities 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 Summit Securities will offset losses from the drop in Summit Securities' long position.| MRF vs. AUTHUM INVESTMENT INFRASTRUCTU | MRF vs. Indian Metals Ferro | MRF vs. Shivalik Bimetal Controls | MRF vs. Shyam Metalics and |
| Summit Securities vs. Kingfa Science Technology | Summit Securities vs. Rico Auto Industries | Summit Securities vs. GACM Technologies Limited | Summit Securities vs. COSMO FIRST 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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