Correlation Between NIFTY 100 and Spencers Retail
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By analyzing existing cross correlation between NIFTY 100 and Spencers Retail Limited, you can compare the effects of market volatilities on NIFTY 100 and Spencers Retail 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 100 with a short position of Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY 100 and Spencers Retail.
Diversification Opportunities for NIFTY 100 and Spencers Retail
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIFTY and Spencers is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY 100 and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail and NIFTY 100 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 100 are associated (or correlated) with Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of NIFTY 100 i.e., NIFTY 100 and Spencers Retail go up and down completely randomly.
Pair Corralation between NIFTY 100 and Spencers Retail
Assuming the 90 days trading horizon NIFTY 100 is expected to generate 0.87 times more return on investment than Spencers Retail. However, NIFTY 100 is 1.14 times less risky than Spencers Retail. It trades about 0.03 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about 0.02 per unit of risk. If you would invest 1,830,740 in NIFTY 100 on October 9, 2024 and sell it today you would earn a total of 609,720 from holding NIFTY 100 or generate 33.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
NIFTY 100 vs. Spencers Retail Limited
Performance |
| Timeline |
NIFTY 100 and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
NIFTY 100
Pair trading matchups for NIFTY 100
Spencers Retail Limited
Pair trading matchups for Spencers Retail
Pair Trading with NIFTY 100 and Spencers Retail
The main advantage of trading using opposite NIFTY 100 and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY 100 position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| NIFTY 100 vs. Network18 Media Investments | NIFTY 100 vs. MSP Steel Power | NIFTY 100 vs. Jindal Steel Power | NIFTY 100 vs. NMDC Steel Limited |
| Spencers Retail vs. Bodhi Tree Multimedia | Spencers Retail vs. Eros International Media | Spencers Retail vs. HDFC Asset Management | Spencers Retail vs. LLOYDS METALS 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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