Correlation Between POWERGRID Infrastructure and ILFS Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between POWERGRID Infrastructure Investment and ILFS Investment Managers, you can compare the effects of market volatilities on POWERGRID Infrastructure and ILFS Investment 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 POWERGRID Infrastructure with a short position of ILFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and ILFS Investment.
Diversification Opportunities for POWERGRID Infrastructure and ILFS Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POWERGRID and ILFS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves and ILFS Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILFS Investment Managers and POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment are associated (or correlated) with ILFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILFS Investment Managers has no effect on the direction of POWERGRID Infrastructure i.e., POWERGRID Infrastructure and ILFS Investment go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and ILFS Investment
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to under-perform the ILFS Investment. But the stock apears to be less risky and, when comparing its historical volatility, POWERGRID Infrastructure Investment is 4.65 times less risky than ILFS Investment. The stock trades about -0.12 of its potential returns per unit of risk. The ILFS Investment Managers is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 580.00 in ILFS Investment Managers on October 16, 2024 and sell it today you would earn a total of 378.00 from holding ILFS Investment Managers or generate 65.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. ILFS Investment Managers
Performance |
| Timeline |
| POWERGRID Infrastructure |
| ILFS Investment Managers |
POWERGRID Infrastructure and ILFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and ILFS Investment
The main advantage of trading using opposite POWERGRID Infrastructure and ILFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure position performs unexpectedly, ILFS Investment 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 ILFS Investment will offset losses from the drop in ILFS Investment's long position.The idea behind POWERGRID Infrastructure Investment and ILFS Investment Managers 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.
| ILFS Investment vs. Ravi Kumar Distilleries | ILFS Investment vs. POWERGRID Infrastructure Investment | ILFS Investment vs. The Investment Trust | ILFS Investment vs. Alkali Metals 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |