Correlation Between Premier Polyfilm and Generic Engineering
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By analyzing existing cross correlation between Premier Polyfilm Limited and Generic Engineering Construction, you can compare the effects of market volatilities on Premier Polyfilm and Generic Engineering 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 Premier Polyfilm with a short position of Generic Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Polyfilm and Generic Engineering.
Diversification Opportunities for Premier Polyfilm and Generic Engineering
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Premier and Generic is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Premier Polyfilm Limited and Generic Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generic Engineering and Premier Polyfilm 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 Premier Polyfilm Limited are associated (or correlated) with Generic Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generic Engineering has no effect on the direction of Premier Polyfilm i.e., Premier Polyfilm and Generic Engineering go up and down completely randomly.
Pair Corralation between Premier Polyfilm and Generic Engineering
Assuming the 90 days trading horizon Premier Polyfilm Limited is expected to generate 0.89 times more return on investment than Generic Engineering. However, Premier Polyfilm Limited is 1.13 times less risky than Generic Engineering. It trades about 0.41 of its potential returns per unit of risk. Generic Engineering Construction is currently generating about -0.14 per unit of risk. If you would invest 6,361 in Premier Polyfilm Limited on October 9, 2024 and sell it today you would earn a total of 1,984 from holding Premier Polyfilm Limited or generate 31.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Polyfilm Limited vs. Generic Engineering Constructi
Performance |
| Timeline |
| Premier Polyfilm |
| Generic Engineering |
Premier Polyfilm and Generic Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Polyfilm and Generic Engineering
The main advantage of trading using opposite Premier Polyfilm and Generic Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Polyfilm position performs unexpectedly, Generic Engineering 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 Generic Engineering will offset losses from the drop in Generic Engineering's long position.| Premier Polyfilm vs. NMDC Limited | Premier Polyfilm vs. Steel Authority of | Premier Polyfilm vs. Embassy Office Parks | Premier Polyfilm vs. Jai Balaji Industries |
| Generic Engineering vs. Shivalik Bimetal Controls | Generic Engineering vs. BF Utilities Limited | Generic Engineering vs. Indian Metals Ferro | Generic Engineering vs. LLOYDS METALS AND |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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