Correlation Between Page Industries and Investment Trust
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By analyzing existing cross correlation between Page Industries Limited and The Investment Trust, you can compare the effects of market volatilities on Page Industries and Investment Trust 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 Page Industries with a short position of Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Page Industries and Investment Trust.
Diversification Opportunities for Page Industries and Investment Trust
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Page and Investment is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Page Industries Limited and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust and Page Industries 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 Page Industries Limited are associated (or correlated) with Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Page Industries i.e., Page Industries and Investment Trust go up and down completely randomly.
Pair Corralation between Page Industries and Investment Trust
Assuming the 90 days trading horizon Page Industries is expected to generate 4.31 times less return on investment than Investment Trust. But when comparing it to its historical volatility, Page Industries Limited is 1.92 times less risky than Investment Trust. It trades about 0.03 of its potential returns per unit of risk. The Investment Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,275 in The Investment Trust on November 28, 2024 and sell it today you would earn a total of 7,901 from holding The Investment Trust or generate 108.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Page Industries Limited vs. The Investment Trust
Performance |
| Timeline |
| Page Industries |
| Investment Trust |
Page Industries and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Page Industries and Investment Trust
The main advantage of trading using opposite Page Industries and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Page Industries position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Page Industries vs. Indian Metals Ferro | Page Industries vs. Hybrid Financial Services | Page Industries vs. Keynote Financial Services | Page Industries vs. DCM Financial Services |
| Investment Trust vs. HDFC Life Insurance | Investment Trust vs. Som Distilleries Breweries | Investment Trust vs. Network18 Media Investments | Investment Trust vs. V Mart Retail 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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