Correlation Between NIFTY SUMER and Genus Power
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By analyzing existing cross correlation between NIFTY SUMER DURABLES and Genus Power Infrastructures, you can compare the effects of market volatilities on NIFTY SUMER and Genus Power 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 Genus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY SUMER and Genus Power.
Diversification Opportunities for NIFTY SUMER and Genus Power
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NIFTY and Genus is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY SUMER DURABLES and Genus Power Infrastructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus Power Infrastr 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 Genus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus Power Infrastr has no effect on the direction of NIFTY SUMER i.e., NIFTY SUMER and Genus Power go up and down completely randomly.
Pair Corralation between NIFTY SUMER and Genus Power
Assuming the 90 days trading horizon NIFTY SUMER is expected to generate 2.68 times less return on investment than Genus Power. But when comparing it to its historical volatility, NIFTY SUMER DURABLES is 2.19 times less risky than Genus Power. It trades about 0.23 of its potential returns per unit of risk. Genus Power Infrastructures is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 40,695 in Genus Power Infrastructures on September 4, 2024 and sell it today you would earn a total of 5,600 from holding Genus Power Infrastructures or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
NIFTY SUMER DURABLES vs. Genus Power Infrastructures
Performance |
| Timeline |
NIFTY SUMER and Genus Power Volatility Contrast
Predicted Return Density |
| Returns |
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Genus Power Infrastructures
Pair trading matchups for Genus Power
Pair Trading with NIFTY SUMER and Genus Power
The main advantage of trading using opposite NIFTY SUMER and Genus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY SUMER position performs unexpectedly, Genus Power 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 Genus Power will offset losses from the drop in Genus Power's 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 |
| Genus Power vs. Indian Railway Finance | Genus Power vs. Cholamandalam Financial Holdings | Genus Power vs. Reliance Industries Limited | Genus Power vs. Tata Consultancy Services |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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