Correlation Between Refex Industries and Abbott India
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By analyzing existing cross correlation between Refex Industries Limited and Abbott India Limited, you can compare the effects of market volatilities on Refex Industries and Abbott India 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 Refex Industries with a short position of Abbott India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Refex Industries and Abbott India.
Diversification Opportunities for Refex Industries and Abbott India
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Refex and Abbott is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited and Abbott India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbott India Limited and Refex Industries 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 Refex Industries Limited are associated (or correlated) with Abbott India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbott India Limited has no effect on the direction of Refex Industries i.e., Refex Industries and Abbott India go up and down completely randomly.
Pair Corralation between Refex Industries and Abbott India
Assuming the 90 days trading horizon Refex Industries Limited is expected to generate 1.97 times more return on investment than Abbott India. However, Refex Industries is 1.97 times more volatile than Abbott India Limited. It trades about 0.13 of its potential returns per unit of risk. Abbott India Limited is currently generating about -0.22 per unit of risk. If you would invest 48,715 in Refex Industries Limited on September 2, 2024 and sell it today you would earn a total of 3,175 from holding Refex Industries Limited or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Refex Industries Limited vs. Abbott India Limited
Performance |
| Timeline |
| Refex Industries |
| Abbott India Limited |
Refex Industries and Abbott India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Refex Industries and Abbott India
The main advantage of trading using opposite Refex Industries and Abbott India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries position performs unexpectedly, Abbott India 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 Abbott India will offset losses from the drop in Abbott India's long position.| Refex Industries vs. Digjam Limited | Refex Industries vs. Gujarat Raffia Industries | Refex Industries vs. Kingfa Science Technology | Refex Industries vs. Rico Auto Industries |
| Abbott India vs. MRF Limited | Abbott India vs. Bosch Limited | Abbott India vs. Bajaj Holdings Investment | Abbott India vs. Vardhman Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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