Correlation Between Prakash Steelage and Osia Hyper
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By analyzing existing cross correlation between Prakash Steelage Limited and Osia Hyper Retail, you can compare the effects of market volatilities on Prakash Steelage and Osia Hyper 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 Osia Hyper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prakash Steelage and Osia Hyper.
Diversification Opportunities for Prakash Steelage and Osia Hyper
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prakash and Osia is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Prakash Steelage Limited and Osia Hyper Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osia Hyper Retail 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 Osia Hyper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osia Hyper Retail has no effect on the direction of Prakash Steelage i.e., Prakash Steelage and Osia Hyper go up and down completely randomly.
Pair Corralation between Prakash Steelage and Osia Hyper
Assuming the 90 days trading horizon Prakash Steelage Limited is expected to generate 0.86 times more return on investment than Osia Hyper. However, Prakash Steelage Limited is 1.17 times less risky than Osia Hyper. It trades about -0.04 of its potential returns per unit of risk. Osia Hyper Retail is currently generating about -0.11 per unit of risk. If you would invest 1,060 in Prakash Steelage Limited on November 3, 2024 and sell it today you would lose (294.00) from holding Prakash Steelage Limited or give up 27.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Prakash Steelage Limited vs. Osia Hyper Retail
Performance |
| Timeline |
| Prakash Steelage |
| Osia Hyper Retail |
Prakash Steelage and Osia Hyper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prakash Steelage and Osia Hyper
The main advantage of trading using opposite Prakash Steelage and Osia Hyper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prakash Steelage position performs unexpectedly, Osia Hyper 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 Osia Hyper will offset losses from the drop in Osia Hyper's long position.| Prakash Steelage vs. Future Retail Limited | Prakash Steelage vs. Spencers Retail Limited | Prakash Steelage vs. Eros International Media | Prakash Steelage vs. EMBASSY OFFICE PARKS |
| Osia Hyper vs. Paramount Communications Limited | Osia Hyper vs. Beta Drugs | Osia Hyper vs. Generic Engineering Construction | Osia Hyper vs. Kingfa Science Technology |
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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