Correlation Between Prakash Steelage and STEEL EXCHANGE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Prakash Steelage Limited and STEEL EXCHANGE INDIA, you can compare the effects of market volatilities on Prakash Steelage and STEEL EXCHANGE 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 STEEL EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prakash Steelage and STEEL EXCHANGE.
Diversification Opportunities for Prakash Steelage and STEEL EXCHANGE
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prakash and STEEL is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Prakash Steelage Limited and STEEL EXCHANGE INDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STEEL EXCHANGE INDIA 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 STEEL EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STEEL EXCHANGE INDIA has no effect on the direction of Prakash Steelage i.e., Prakash Steelage and STEEL EXCHANGE go up and down completely randomly.
Pair Corralation between Prakash Steelage and STEEL EXCHANGE
Assuming the 90 days trading horizon Prakash Steelage Limited is expected to generate 1.0 times more return on investment than STEEL EXCHANGE. However, Prakash Steelage is 1.0 times more volatile than STEEL EXCHANGE INDIA. It trades about -0.04 of its potential returns per unit of risk. STEEL EXCHANGE INDIA is currently generating about -0.06 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 | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Prakash Steelage Limited vs. STEEL EXCHANGE INDIA
Performance |
| Timeline |
| Prakash Steelage |
| STEEL EXCHANGE INDIA |
Prakash Steelage and STEEL EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prakash Steelage and STEEL EXCHANGE
The main advantage of trading using opposite Prakash Steelage and STEEL EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prakash Steelage position performs unexpectedly, STEEL EXCHANGE 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 STEEL EXCHANGE will offset losses from the drop in STEEL EXCHANGE'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 |
| STEEL EXCHANGE vs. The Indian Hotels | STEEL EXCHANGE vs. Juniper Hotels | STEEL EXCHANGE vs. Chalet Hotels Limited | STEEL EXCHANGE vs. Viceroy Hotels Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |