Correlation Between Niraj Ispat and POWERGRID Infrastructure
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By analyzing existing cross correlation between Niraj Ispat Industries and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on Niraj Ispat and POWERGRID Infrastructure 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 Niraj Ispat with a short position of POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niraj Ispat and POWERGRID Infrastructure.
Diversification Opportunities for Niraj Ispat and POWERGRID Infrastructure
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Niraj and POWERGRID is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Niraj Ispat Industries and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure and Niraj Ispat 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 Niraj Ispat Industries are associated (or correlated) with POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Niraj Ispat i.e., Niraj Ispat and POWERGRID Infrastructure go up and down completely randomly.
Pair Corralation between Niraj Ispat and POWERGRID Infrastructure
Assuming the 90 days trading horizon Niraj Ispat Industries is expected to generate 4.18 times more return on investment than POWERGRID Infrastructure. However, Niraj Ispat is 4.18 times more volatile than POWERGRID Infrastructure Investment. It trades about 0.31 of its potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about -0.37 per unit of risk. If you would invest 21,442 in Niraj Ispat Industries on October 12, 2024 and sell it today you would earn a total of 3,076 from holding Niraj Ispat Industries or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Niraj Ispat Industries vs. POWERGRID Infrastructure Inves
Performance |
| Timeline |
| Niraj Ispat Industries |
| POWERGRID Infrastructure |
Niraj Ispat and POWERGRID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niraj Ispat and POWERGRID Infrastructure
The main advantage of trading using opposite Niraj Ispat and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niraj Ispat position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.| Niraj Ispat vs. Omkar Speciality Chemicals | Niraj Ispat vs. Cyber Media Research | Niraj Ispat vs. DJ Mediaprint Logistics | Niraj Ispat vs. Dharani SugarsChemicals 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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