Correlation Between NRB Industrial and 3M India

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NRB Industrial and 3M India at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NRB Industrial and 3M India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRB Industrial Bearings and 3M India Limited, you can compare the effects of market volatilities on NRB Industrial and 3M India 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 NRB Industrial with a short position of 3M India. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRB Industrial and 3M India.

Diversification Opportunities for NRB Industrial and 3M India

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between NRB and 3MINDIA is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding NRB Industrial Bearings and 3M India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M India Limited and NRB Industrial 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 NRB Industrial Bearings are associated (or correlated) with 3M India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M India Limited has no effect on the direction of NRB Industrial i.e., NRB Industrial and 3M India go up and down completely randomly.

Pair Corralation between NRB Industrial and 3M India

Assuming the 90 days trading horizon NRB Industrial Bearings is expected to under-perform the 3M India. In addition to that, NRB Industrial is 1.27 times more volatile than 3M India Limited. It trades about -0.11 of its total potential returns per unit of risk. 3M India Limited is currently generating about -0.06 per unit of volatility. If you would invest  3,095,805  in 3M India Limited on November 3, 2024 and sell it today you would lose (106,580) from holding 3M India Limited or give up 3.44% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

NRB Industrial Bearings  vs.  3M India Limited

 Performance 
       Timeline  
NRB Industrial Bearings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NRB Industrial Bearings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
3M India Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days 3M India Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

NRB Industrial and 3M India Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NRB Industrial and 3M India

The main advantage of trading using opposite NRB Industrial and 3M India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRB Industrial position performs unexpectedly, 3M India 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 3M India will offset losses from the drop in 3M India's long position.
NRB Industrial vs. Gangotri Textiles Limited
NRB Industrial vs. Hemisphere Properties India
NRB Industrial vs. Kingfa Science Technology
NRB Industrial vs. Rico Auto Industries
The idea behind NRB Industrial Bearings and 3M India Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
3M India vs. Baazar Style Retail
3M India vs. Centum Electronics Limited
3M India vs. Spencers Retail Limited
3M India vs. V2 Retail 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY