Correlation Between SAL Steel and Akums Drugs
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By analyzing existing cross correlation between SAL Steel Limited and Akums Drugs and, you can compare the effects of market volatilities on SAL Steel and Akums Drugs 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 SAL Steel with a short position of Akums Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAL Steel and Akums Drugs.
Diversification Opportunities for SAL Steel and Akums Drugs
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAL and Akums is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SAL Steel Limited and Akums Drugs and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akums Drugs and SAL Steel 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 SAL Steel Limited are associated (or correlated) with Akums Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akums Drugs has no effect on the direction of SAL Steel i.e., SAL Steel and Akums Drugs go up and down completely randomly.
Pair Corralation between SAL Steel and Akums Drugs
Assuming the 90 days trading horizon SAL Steel Limited is expected to generate 0.93 times more return on investment than Akums Drugs. However, SAL Steel Limited is 1.07 times less risky than Akums Drugs. It trades about 0.02 of its potential returns per unit of risk. Akums Drugs and is currently generating about -0.05 per unit of risk. If you would invest 1,980 in SAL Steel Limited on October 16, 2024 and sell it today you would earn a total of 133.00 from holding SAL Steel Limited or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.79% |
| Values | Daily Returns |
SAL Steel Limited vs. Akums Drugs and
Performance |
| Timeline |
| SAL Steel Limited |
| Akums Drugs |
SAL Steel and Akums Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAL Steel and Akums Drugs
The main advantage of trading using opposite SAL Steel and Akums Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAL Steel position performs unexpectedly, Akums Drugs 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 Akums Drugs will offset losses from the drop in Akums Drugs' long position.| SAL Steel vs. Tree House Education | SAL Steel vs. G Tec Jainx Education | SAL Steel vs. Associated Alcohols Breweries | SAL Steel vs. Hindcon Chemicals Limited |
| Akums Drugs vs. SAL Steel Limited | Akums Drugs vs. Visa Steel Limited | Akums Drugs vs. Vardhman Special Steels | Akums Drugs 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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