Correlation Between Refex Industries and Parag Milk
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By analyzing existing cross correlation between Refex Industries Limited and Parag Milk Foods, you can compare the effects of market volatilities on Refex Industries and Parag Milk 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 Parag Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Refex Industries and Parag Milk.
Diversification Opportunities for Refex Industries and Parag Milk
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Refex and Parag is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Refex Industries Limited and Parag Milk Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parag Milk Foods 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 Parag Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parag Milk Foods has no effect on the direction of Refex Industries i.e., Refex Industries and Parag Milk go up and down completely randomly.
Pair Corralation between Refex Industries and Parag Milk
Assuming the 90 days trading horizon Refex Industries Limited is expected to generate 0.89 times more return on investment than Parag Milk. However, Refex Industries Limited is 1.12 times less risky than Parag Milk. It trades about 0.13 of its potential returns per unit of risk. Parag Milk Foods is currently generating about 0.01 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Refex Industries Limited vs. Parag Milk Foods
Performance |
| Timeline |
| Refex Industries |
| Parag Milk Foods |
Refex Industries and Parag Milk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Refex Industries and Parag Milk
The main advantage of trading using opposite Refex Industries and Parag Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Refex Industries position performs unexpectedly, Parag Milk 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 Parag Milk will offset losses from the drop in Parag Milk's long position.| Refex Industries vs. Baazar Style Retail | Refex Industries vs. POWERGRID Infrastructure Investment | Refex Industries vs. V Mart Retail Limited | Refex Industries vs. SIL Investments Limited |
| Parag Milk vs. Steel Authority of | Parag Milk vs. Indian Metals Ferro | Parag Milk vs. LLOYDS METALS AND | Parag Milk vs. NMDC Steel 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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