Correlation Between Niraj Ispat and Sakar Healthcare
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By analyzing existing cross correlation between Niraj Ispat Industries and Sakar Healthcare Limited, you can compare the effects of market volatilities on Niraj Ispat and Sakar Healthcare 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 Sakar Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niraj Ispat and Sakar Healthcare.
Diversification Opportunities for Niraj Ispat and Sakar Healthcare
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Niraj and Sakar is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Niraj Ispat Industries and Sakar Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakar Healthcare 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 Sakar Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakar Healthcare has no effect on the direction of Niraj Ispat i.e., Niraj Ispat and Sakar Healthcare go up and down completely randomly.
Pair Corralation between Niraj Ispat and Sakar Healthcare
Assuming the 90 days trading horizon Niraj Ispat Industries is expected to generate 0.57 times more return on investment than Sakar Healthcare. However, Niraj Ispat Industries is 1.74 times less risky than Sakar Healthcare. It trades about 0.16 of its potential returns per unit of risk. Sakar Healthcare Limited is currently generating about -0.07 per unit of risk. If you would invest 21,442 in Niraj Ispat Industries on November 6, 2024 and sell it today you would earn a total of 2,791 from holding Niraj Ispat Industries or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niraj Ispat Industries vs. Sakar Healthcare Limited
Performance |
| Timeline |
| Niraj Ispat Industries |
| Sakar Healthcare |
Niraj Ispat and Sakar Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niraj Ispat and Sakar Healthcare
The main advantage of trading using opposite Niraj Ispat and Sakar Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niraj Ispat position performs unexpectedly, Sakar Healthcare 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 Sakar Healthcare will offset losses from the drop in Sakar Healthcare's long position.| Niraj Ispat vs. NMDC Steel Limited | Niraj Ispat vs. Transport of | Niraj Ispat vs. Zenith Steel Pipes | Niraj Ispat vs. Sunflag Iron And |
| Sakar Healthcare vs. State Bank of | Sakar Healthcare vs. Life Insurance | Sakar Healthcare vs. HDFC Bank Limited | Sakar Healthcare vs. ICICI Bank 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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