Correlation Between Refex Industries and Garware Hi
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By analyzing existing cross correlation between Refex Industries Limited and Garware Hi Tech Films, you can compare the effects of market volatilities on Refex Industries and Garware Hi 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 Garware Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Refex Industries and Garware Hi.
Diversification Opportunities for Refex Industries and Garware Hi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Refex and Garware is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited and Garware Hi Tech Films in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garware Hi Tech 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 Garware Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garware Hi Tech has no effect on the direction of Refex Industries i.e., Refex Industries and Garware Hi go up and down completely randomly.
Pair Corralation between Refex Industries and Garware Hi
Assuming the 90 days trading horizon Refex Industries Limited is expected to under-perform the Garware Hi. But the stock apears to be less risky and, when comparing its historical volatility, Refex Industries Limited is 1.59 times less risky than Garware Hi. The stock trades about -0.08 of its potential returns per unit of risk. The Garware Hi Tech Films is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 406,360 in Garware Hi Tech Films on November 7, 2024 and sell it today you would lose (55,620) from holding Garware Hi Tech Films or give up 13.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Refex Industries Limited vs. Garware Hi Tech Films
Performance |
| Timeline |
| Refex Industries |
| Garware Hi Tech |
Refex Industries and Garware Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Refex Industries and Garware Hi
The main advantage of trading using opposite Refex Industries and Garware Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries position performs unexpectedly, Garware Hi 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 Garware Hi will offset losses from the drop in Garware Hi's long position.| Refex Industries vs. Pilani Investment and | Refex Industries vs. Industrial Investment Trust | Refex Industries vs. Nalwa Sons Investments | Refex Industries vs. General Insurance |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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