Correlation Between N B and Summit Securities
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By analyzing existing cross correlation between N B I and Summit Securities Limited, you can compare the effects of market volatilities on N B 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 N B with a short position of Summit Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of N B and Summit Securities.
Diversification Opportunities for N B and Summit Securities
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBIFIN and Summit is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding N B I and Summit Securities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Securities and N B 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 N B I 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 N B i.e., N B and Summit Securities go up and down completely randomly.
Pair Corralation between N B and Summit Securities
Assuming the 90 days trading horizon N B I is expected to generate 0.64 times more return on investment than Summit Securities. However, N B I is 1.57 times less risky than Summit Securities. It trades about 0.49 of its potential returns per unit of risk. Summit Securities Limited is currently generating about 0.18 per unit of risk. If you would invest 228,205 in N B I on August 30, 2024 and sell it today you would earn a total of 85,035 from holding N B I or generate 37.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
N B I vs. Summit Securities Limited
Performance |
| Timeline |
| N B I |
| Summit Securities |
N B and Summit Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N B and Summit Securities
The main advantage of trading using opposite N B and Summit Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N B 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.| N B vs. Alkali Metals Limited | N B vs. Pondy Oxides Chemicals | N B vs. Madhav Copper Limited | N B vs. Compucom Software Limited |
| Summit Securities vs. JGCHEMICALS LIMITED | Summit Securities vs. Zuari Agro Chemicals | Summit Securities vs. Krebs Biochemicals and | Summit Securities vs. Dc Infotech And |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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