Correlation Between Repco Home and Silgo Retail
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By analyzing existing cross correlation between Repco Home Finance and Silgo Retail Limited, you can compare the effects of market volatilities on Repco Home and Silgo Retail 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 Repco Home with a short position of Silgo Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repco Home and Silgo Retail.
Diversification Opportunities for Repco Home and Silgo Retail
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Repco and Silgo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Repco Home Finance and Silgo Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgo Retail Limited and Repco Home 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 Repco Home Finance are associated (or correlated) with Silgo Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgo Retail Limited has no effect on the direction of Repco Home i.e., Repco Home and Silgo Retail go up and down completely randomly.
Pair Corralation between Repco Home and Silgo Retail
Assuming the 90 days trading horizon Repco Home Finance is expected to generate 0.94 times more return on investment than Silgo Retail. However, Repco Home Finance is 1.07 times less risky than Silgo Retail. It trades about -0.28 of its potential returns per unit of risk. Silgo Retail Limited is currently generating about -0.39 per unit of risk. If you would invest 45,940 in Repco Home Finance on October 16, 2024 and sell it today you would lose (6,025) from holding Repco Home Finance or give up 13.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repco Home Finance vs. Silgo Retail Limited
Performance |
| Timeline |
| Repco Home Finance |
| Silgo Retail Limited |
Repco Home and Silgo Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repco Home and Silgo Retail
The main advantage of trading using opposite Repco Home and Silgo Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repco Home position performs unexpectedly, Silgo Retail 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 Silgo Retail will offset losses from the drop in Silgo Retail's long position.| Repco Home vs. BF Investment Limited | Repco Home vs. Megastar Foods Limited | Repco Home vs. Bajaj Holdings Investment | Repco Home vs. Welspun Investments and |
| Silgo Retail vs. Repco Home Finance | Silgo Retail vs. Embassy Office Parks | Silgo Retail vs. Vertoz Advertising Limited | Silgo Retail vs. Computer Age Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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