Correlation Between NIFTY SUMER and Fino Payments
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By analyzing existing cross correlation between NIFTY SUMER DURABLES and Fino Payments Bank, you can compare the effects of market volatilities on NIFTY SUMER 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 NIFTY SUMER with a short position of Fino Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY SUMER and Fino Payments.
Diversification Opportunities for NIFTY SUMER and Fino Payments
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NIFTY and Fino is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY SUMER DURABLES 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 NIFTY SUMER 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 NIFTY SUMER DURABLES 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 NIFTY SUMER i.e., NIFTY SUMER and Fino Payments go up and down completely randomly.
Pair Corralation between NIFTY SUMER and Fino Payments
Assuming the 90 days trading horizon NIFTY SUMER is expected to generate 1.35 times less return on investment than Fino Payments. But when comparing it to its historical volatility, NIFTY SUMER DURABLES is 3.23 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 27,045 in Fino Payments Bank on September 4, 2024 and sell it today you would earn a total of 9,095 from holding Fino Payments Bank or generate 33.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
NIFTY SUMER DURABLES vs. Fino Payments Bank
Performance |
| Timeline |
NIFTY SUMER and Fino Payments Volatility Contrast
Predicted Return Density |
| Returns |
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Fino Payments Bank
Pair trading matchups for Fino Payments
Pair Trading with NIFTY SUMER and Fino Payments
The main advantage of trading using opposite NIFTY SUMER and Fino Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY SUMER 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.| NIFTY SUMER vs. Uniinfo Telecom Services | NIFTY SUMER vs. Teamlease Services Limited | NIFTY SUMER vs. Gujarat Lease Financing | NIFTY SUMER vs. Jindal Steel Power |
| Fino Payments vs. Reliance Industries Limited | Fino Payments vs. Tata Consultancy Services | Fino Payments vs. HDFC Bank Limited | Fino Payments vs. Bharti Airtel 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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