Correlation Between MRF and Sterling
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By analyzing existing cross correlation between MRF Limited and Sterling and Wilson, you can compare the effects of market volatilities on MRF and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Sterling.
Diversification Opportunities for MRF and Sterling
Very weak diversification
The 3 months correlation between MRF and Sterling is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of MRF i.e., MRF and Sterling go up and down completely randomly.
Pair Corralation between MRF and Sterling
Assuming the 90 days trading horizon MRF Limited is expected to generate 0.42 times more return on investment than Sterling. However, MRF Limited is 2.38 times less risky than Sterling. It trades about -0.05 of its potential returns per unit of risk. Sterling and Wilson is currently generating about -0.07 per unit of risk. If you would invest 13,688,300 in MRF Limited on November 5, 2024 and sell it today you would lose (2,309,000) from holding MRF Limited or give up 16.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
MRF Limited vs. Sterling and Wilson
Performance |
| Timeline |
| MRF Limited |
| Sterling and Wilson |
MRF and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Sterling
The main advantage of trading using opposite MRF and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| MRF vs. Silver Touch Technologies | MRF vs. Vibhor Steel Tubes | MRF vs. Som Distilleries Breweries | MRF vs. Transport of |
| Sterling vs. Radaan Mediaworks India | Sterling vs. Jaypee Infratech Limited | Sterling vs. Shemaroo Entertainment Limited | Sterling vs. Hathway Cable Datacom |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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