Correlation Between Prakash Steelage and Manaksia Steels
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By analyzing existing cross correlation between Prakash Steelage Limited and Manaksia Steels Limited, you can compare the effects of market volatilities on Prakash Steelage and Manaksia Steels 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 Prakash Steelage with a short position of Manaksia Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prakash Steelage and Manaksia Steels.
Diversification Opportunities for Prakash Steelage and Manaksia Steels
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prakash and Manaksia is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Prakash Steelage Limited and Manaksia Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Steels and Prakash Steelage 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 Prakash Steelage Limited are associated (or correlated) with Manaksia Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Steels has no effect on the direction of Prakash Steelage i.e., Prakash Steelage and Manaksia Steels go up and down completely randomly.
Pair Corralation between Prakash Steelage and Manaksia Steels
Assuming the 90 days trading horizon Prakash Steelage Limited is expected to generate 0.9 times more return on investment than Manaksia Steels. However, Prakash Steelage Limited is 1.12 times less risky than Manaksia Steels. It trades about 0.02 of its potential returns per unit of risk. Manaksia Steels Limited is currently generating about -0.14 per unit of risk. If you would invest 806.00 in Prakash Steelage Limited on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Prakash Steelage Limited or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prakash Steelage Limited vs. Manaksia Steels Limited
Performance |
| Timeline |
| Prakash Steelage |
| Manaksia Steels |
Prakash Steelage and Manaksia Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prakash Steelage and Manaksia Steels
The main advantage of trading using opposite Prakash Steelage and Manaksia Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prakash Steelage position performs unexpectedly, Manaksia Steels 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 Manaksia Steels will offset losses from the drop in Manaksia Steels' long position.| Prakash Steelage vs. Steel Authority of | Prakash Steelage vs. Embassy Office Parks | Prakash Steelage vs. JTL Industries |
| Manaksia Steels vs. Steel Authority of | Manaksia Steels vs. Embassy Office Parks | Manaksia Steels vs. JTL Industries |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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