Correlation Between Refex Industries and Hilton Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Refex Industries Limited and Hilton Metal Forging, you can compare the effects of market volatilities on Refex Industries and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Refex Industries and Hilton Metal.
Diversification Opportunities for Refex Industries and Hilton Metal
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Refex and Hilton is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of Refex Industries i.e., Refex Industries and Hilton Metal go up and down completely randomly.
Pair Corralation between Refex Industries and Hilton Metal
Assuming the 90 days trading horizon Refex Industries Limited is expected to generate 1.21 times more return on investment than Hilton Metal. However, Refex Industries is 1.21 times more volatile than Hilton Metal Forging. It trades about 0.11 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about 0.01 per unit of risk. If you would invest 32,925 in Refex Industries Limited on November 2, 2024 and sell it today you would earn a total of 13,610 from holding Refex Industries Limited or generate 41.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Refex Industries Limited vs. Hilton Metal Forging
Performance |
| Timeline |
| Refex Industries |
| Hilton Metal Forging |
Refex Industries and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Refex Industries and Hilton Metal
The main advantage of trading using opposite Refex Industries and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| Refex Industries vs. Som Distilleries Breweries | Refex Industries vs. Data Patterns Limited | Refex Industries vs. JGCHEMICALS LIMITED | Refex Industries vs. IOL Chemicals and |
| Hilton Metal vs. Cantabil Retail India | Hilton Metal vs. KNR Constructions Limited | Hilton Metal vs. Silgo Retail Limited | Hilton Metal vs. Baazar Style Retail |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |