Correlation Between NIFTY SUMER and RHI MAGNESITA
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By analyzing existing cross correlation between NIFTY SUMER DURABLES and RHI MAGNESITA INDIA, you can compare the effects of market volatilities on NIFTY SUMER and RHI MAGNESITA 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 RHI MAGNESITA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY SUMER and RHI MAGNESITA.
Diversification Opportunities for NIFTY SUMER and RHI MAGNESITA
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NIFTY and RHI is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY SUMER DURABLES and RHI MAGNESITA INDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RHI MAGNESITA INDIA 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 RHI MAGNESITA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RHI MAGNESITA INDIA has no effect on the direction of NIFTY SUMER i.e., NIFTY SUMER and RHI MAGNESITA go up and down completely randomly.
Pair Corralation between NIFTY SUMER and RHI MAGNESITA
Assuming the 90 days trading horizon NIFTY SUMER DURABLES is expected to generate 0.5 times more return on investment than RHI MAGNESITA. However, NIFTY SUMER DURABLES is 1.99 times less risky than RHI MAGNESITA. It trades about 0.03 of its potential returns per unit of risk. RHI MAGNESITA INDIA is currently generating about -0.13 per unit of risk. If you would invest 4,089,055 in NIFTY SUMER DURABLES on September 23, 2024 and sell it today you would earn a total of 41,410 from holding NIFTY SUMER DURABLES or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
NIFTY SUMER DURABLES vs. RHI MAGNESITA INDIA
Performance |
| Timeline |
NIFTY SUMER and RHI MAGNESITA Volatility Contrast
Predicted Return Density |
| Returns |
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
RHI MAGNESITA INDIA
Pair trading matchups for RHI MAGNESITA
Pair Trading with NIFTY SUMER and RHI MAGNESITA
The main advantage of trading using opposite NIFTY SUMER and RHI MAGNESITA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY SUMER position performs unexpectedly, RHI MAGNESITA 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 RHI MAGNESITA will offset losses from the drop in RHI MAGNESITA's long position.| NIFTY SUMER vs. HDFC Asset Management | NIFTY SUMER vs. DJ Mediaprint Logistics | NIFTY SUMER vs. Home First Finance | NIFTY SUMER vs. Eros International Media |
| RHI MAGNESITA vs. Ratnamani Metals Tubes | RHI MAGNESITA vs. The Hi Tech Gears | RHI MAGNESITA vs. Shivalik Bimetal Controls | RHI MAGNESITA vs. Pritish Nandy Communications |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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