Correlation Between Prakash Steelage and Spencers Retail
Specify exactly 2 symbols:
By analyzing existing cross correlation between Prakash Steelage Limited and Spencers Retail Limited, you can compare the effects of market volatilities on Prakash Steelage and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prakash Steelage and Spencers Retail.
Diversification Opportunities for Prakash Steelage and Spencers Retail
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prakash and Spencers is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Prakash Steelage Limited and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Prakash Steelage i.e., Prakash Steelage and Spencers Retail go up and down completely randomly.
Pair Corralation between Prakash Steelage and Spencers Retail
Assuming the 90 days trading horizon Prakash Steelage Limited is expected to generate 0.84 times more return on investment than Spencers Retail. However, Prakash Steelage Limited is 1.19 times less risky than Spencers Retail. It trades about -0.04 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.04 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 | 99.19% |
| Values | Daily Returns |
Prakash Steelage Limited vs. Spencers Retail Limited
Performance |
| Timeline |
| Prakash Steelage |
| Spencers Retail |
Prakash Steelage and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prakash Steelage and Spencers Retail
The main advantage of trading using opposite Prakash Steelage and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prakash Steelage position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail'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 |
| Spencers Retail vs. Speciality Restaurants Limited | Spencers Retail vs. Lotus Eye Hospital | Spencers Retail vs. PB Fintech Limited | Spencers Retail vs. Medplus Health Services |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |