Correlation Between Patanjali Foods and Selan Exploration
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By analyzing existing cross correlation between Patanjali Foods Limited and Selan Exploration Technology, you can compare the effects of market volatilities on Patanjali Foods and Selan Exploration 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 Patanjali Foods with a short position of Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patanjali Foods and Selan Exploration.
Diversification Opportunities for Patanjali Foods and Selan Exploration
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Patanjali and Selan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Patanjali Foods Limited and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration and Patanjali Foods 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 Patanjali Foods Limited are associated (or correlated) with Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Patanjali Foods i.e., Patanjali Foods and Selan Exploration go up and down completely randomly.
Pair Corralation between Patanjali Foods and Selan Exploration
Assuming the 90 days trading horizon Patanjali Foods Limited is expected to generate 0.59 times more return on investment than Selan Exploration. However, Patanjali Foods Limited is 1.7 times less risky than Selan Exploration. It trades about -0.03 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about -0.07 per unit of risk. If you would invest 176,185 in Patanjali Foods Limited on September 24, 2024 and sell it today you would lose (1,755) from holding Patanjali Foods Limited or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patanjali Foods Limited vs. Selan Exploration Technology
Performance |
| Timeline |
| Patanjali Foods |
| Selan Exploration |
Patanjali Foods and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patanjali Foods and Selan Exploration
The main advantage of trading using opposite Patanjali Foods and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patanjali Foods position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Patanjali Foods vs. Reliance Industries Limited | Patanjali Foods vs. State Bank of | Patanjali Foods vs. HDFC Bank Limited | Patanjali Foods vs. Oil Natural Gas |
| Selan Exploration vs. Patanjali Foods Limited | Selan Exploration vs. Kohinoor Foods Limited | Selan Exploration vs. Sarveshwar Foods Limited | Selan Exploration vs. Univa Foods 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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