Correlation Between POWERGRID Infrastructure and Selan Exploration
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By analyzing existing cross correlation between POWERGRID Infrastructure Investment and Selan Exploration Technology, you can compare the effects of market volatilities on POWERGRID Infrastructure 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 POWERGRID Infrastructure with a short position of Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and Selan Exploration.
Diversification Opportunities for POWERGRID Infrastructure and Selan Exploration
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POWERGRID and Selan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration 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 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 POWERGRID Infrastructure i.e., POWERGRID Infrastructure and Selan Exploration go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and Selan Exploration
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to generate 0.21 times more return on investment than Selan Exploration. However, POWERGRID Infrastructure Investment is 4.7 times less risky than Selan Exploration. It trades about -0.37 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about -0.18 per unit of risk. If you would invest 8,701 in POWERGRID Infrastructure Investment on October 13, 2024 and sell it today you would lose (353.00) from holding POWERGRID Infrastructure Investment or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. Selan Exploration Technology
Performance |
| Timeline |
| POWERGRID Infrastructure |
| Selan Exploration |
POWERGRID Infrastructure and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and Selan Exploration
The main advantage of trading using opposite POWERGRID Infrastructure and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure 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.The idea behind POWERGRID Infrastructure Investment and Selan Exploration Technology 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.
| Selan Exploration vs. POWERGRID Infrastructure Investment | Selan Exploration vs. Univa Foods Limited | Selan Exploration vs. Kohinoor Foods Limited | Selan Exploration vs. Agro Tech Foods |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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