Correlation Between Niraj Ispat and Pritish Nandy

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Can any of the company-specific risk be diversified away by investing in both Niraj Ispat and Pritish Nandy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Niraj Ispat and Pritish Nandy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niraj Ispat Industries and Pritish Nandy Communications, you can compare the effects of market volatilities on Niraj Ispat and Pritish Nandy 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 Pritish Nandy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niraj Ispat and Pritish Nandy.

Diversification Opportunities for Niraj Ispat and Pritish Nandy

NirajPritishDiversified AwayNirajPritishDiversified Away100%
-0.87
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Niraj and Pritish is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Niraj Ispat Industries and Pritish Nandy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pritish Nandy Commun 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 Pritish Nandy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pritish Nandy Commun has no effect on the direction of Niraj Ispat i.e., Niraj Ispat and Pritish Nandy go up and down completely randomly.

Pair Corralation between Niraj Ispat and Pritish Nandy

Assuming the 90 days trading horizon Niraj Ispat Industries is expected to generate 0.45 times more return on investment than Pritish Nandy. However, Niraj Ispat Industries is 2.21 times less risky than Pritish Nandy. It trades about 0.31 of its potential returns per unit of risk. Pritish Nandy Communications is currently generating about -0.34 per unit of risk. If you would invest  24,233  in Niraj Ispat Industries on November 29, 2024 and sell it today you would earn a total of  2,483  from holding Niraj Ispat Industries or generate 10.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Niraj Ispat Industries  vs.  Pritish Nandy Communications

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -40-30-20-1001020
JavaScript chart by amCharts 3.21.15NIRAJISPAT PNC
       Timeline  
Niraj Ispat Industries 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Niraj Ispat Industries are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Niraj Ispat unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb220230240250260
Pritish Nandy Commun 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Pritish Nandy Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15JanFebFeb3035404550556065

Niraj Ispat and Pritish Nandy Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.53-3.39-2.26-1.120.0191.272.553.825.09 0.050.100.15
JavaScript chart by amCharts 3.21.15NIRAJISPAT PNC
       Returns  

Pair Trading with Niraj Ispat and Pritish Nandy

The main advantage of trading using opposite Niraj Ispat and Pritish Nandy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niraj Ispat position performs unexpectedly, Pritish Nandy 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 Pritish Nandy will offset losses from the drop in Pritish Nandy's long position.
The idea behind Niraj Ispat Industries and Pritish Nandy Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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