Correlation Between POWERGRID Infrastructure and Sintex Plastics
Specify exactly 2 symbols:
By analyzing existing cross correlation between POWERGRID Infrastructure Investment and Sintex Plastics Technology, you can compare the effects of market volatilities on POWERGRID Infrastructure and Sintex Plastics 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 Sintex Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and Sintex Plastics.
Diversification Opportunities for POWERGRID Infrastructure and Sintex Plastics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POWERGRID and Sintex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves and Sintex Plastics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sintex Plastics Tech 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 Sintex Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sintex Plastics Tech has no effect on the direction of POWERGRID Infrastructure i.e., POWERGRID Infrastructure and Sintex Plastics go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and Sintex Plastics
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to generate 0.32 times more return on investment than Sintex Plastics. However, POWERGRID Infrastructure Investment is 3.17 times less risky than Sintex Plastics. It trades about -0.07 of its potential returns per unit of risk. Sintex Plastics Technology is currently generating about -0.03 per unit of risk. If you would invest 9,924 in POWERGRID Infrastructure Investment on September 14, 2024 and sell it today you would lose (1,220) from holding POWERGRID Infrastructure Investment or give up 12.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. Sintex Plastics Technology
Performance |
| Timeline |
| POWERGRID Infrastructure |
| Sintex Plastics Tech |
POWERGRID Infrastructure and Sintex Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and Sintex Plastics
The main advantage of trading using opposite POWERGRID Infrastructure and Sintex Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure position performs unexpectedly, Sintex Plastics 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 Sintex Plastics will offset losses from the drop in Sintex Plastics' long position.The idea behind POWERGRID Infrastructure Investment and Sintex Plastics 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.
| Sintex Plastics vs. Modi Rubber Limited | Sintex Plastics vs. Industrial Investment Trust | Sintex Plastics vs. Pilani Investment and | Sintex Plastics vs. POWERGRID Infrastructure Investment |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |