Correlation Between Rico Auto and Investment Trust
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rico Auto Industries and The Investment Trust, you can compare the effects of market volatilities on Rico Auto and Investment Trust 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 Rico Auto with a short position of Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rico Auto and Investment Trust.
Diversification Opportunities for Rico Auto and Investment Trust
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rico and Investment is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rico Auto Industries and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust and Rico Auto 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 Rico Auto Industries are associated (or correlated) with Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Rico Auto i.e., Rico Auto and Investment Trust go up and down completely randomly.
Pair Corralation between Rico Auto and Investment Trust
Assuming the 90 days trading horizon Rico Auto Industries is expected to generate 1.26 times more return on investment than Investment Trust. However, Rico Auto is 1.26 times more volatile than The Investment Trust. It trades about -0.18 of its potential returns per unit of risk. The Investment Trust is currently generating about -0.27 per unit of risk. If you would invest 9,923 in Rico Auto Industries on November 3, 2024 and sell it today you would lose (1,268) from holding Rico Auto Industries or give up 12.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rico Auto Industries vs. The Investment Trust
Performance |
| Timeline |
| Rico Auto Industries |
| Investment Trust |
Rico Auto and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rico Auto and Investment Trust
The main advantage of trading using opposite Rico Auto and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rico Auto position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Rico Auto vs. Rajnandini Metal Limited | Rico Auto vs. Sarthak Metals Limited | Rico Auto vs. Sportking India Limited | Rico Auto vs. Agarwal Industrial |
| Investment Trust vs. Reliance Industries Limited | Investment Trust vs. Oil Natural Gas | Investment Trust vs. ICICI Bank Limited | Investment Trust vs. Bharti Airtel 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |