Correlation Between Refex Industries and Indo Rama
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By analyzing existing cross correlation between Refex Industries Limited and Indo Rama Synthetics, you can compare the effects of market volatilities on Refex Industries and Indo Rama 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 Indo Rama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Refex Industries and Indo Rama.
Diversification Opportunities for Refex Industries and Indo Rama
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Refex and Indo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited and Indo Rama Synthetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Rama Synthetics 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 Indo Rama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Rama Synthetics has no effect on the direction of Refex Industries i.e., Refex Industries and Indo Rama go up and down completely randomly.
Pair Corralation between Refex Industries and Indo Rama
Assuming the 90 days trading horizon Refex Industries Limited is expected to under-perform the Indo Rama. But the stock apears to be less risky and, when comparing its historical volatility, Refex Industries Limited is 1.07 times less risky than Indo Rama. The stock trades about -0.05 of its potential returns per unit of risk. The Indo Rama Synthetics is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,350 in Indo Rama Synthetics on November 6, 2024 and sell it today you would lose (352.00) from holding Indo Rama Synthetics or give up 8.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Refex Industries Limited vs. Indo Rama Synthetics
Performance |
| Timeline |
| Refex Industries |
| Indo Rama Synthetics |
Refex Industries and Indo Rama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Refex Industries and Indo Rama
The main advantage of trading using opposite Refex Industries and Indo Rama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries position performs unexpectedly, Indo Rama 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 Indo Rama will offset losses from the drop in Indo Rama'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 |
| Indo Rama vs. Baazar Style Retail | Indo Rama vs. V2 Retail Limited | Indo Rama vs. Paramount Communications Limited | Indo Rama vs. Pilani Investment 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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