Correlation Between SAL Steel and Apex Frozen
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By analyzing existing cross correlation between SAL Steel Limited and Apex Frozen Foods, you can compare the effects of market volatilities on SAL Steel and Apex Frozen 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 Apex Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAL Steel and Apex Frozen.
Diversification Opportunities for SAL Steel and Apex Frozen
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAL and Apex is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SAL Steel Limited and Apex Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Frozen Foods 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 Apex Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Frozen Foods has no effect on the direction of SAL Steel i.e., SAL Steel and Apex Frozen go up and down completely randomly.
Pair Corralation between SAL Steel and Apex Frozen
Assuming the 90 days trading horizon SAL Steel Limited is expected to generate 1.39 times more return on investment than Apex Frozen. However, SAL Steel is 1.39 times more volatile than Apex Frozen Foods. It trades about 0.06 of its potential returns per unit of risk. Apex Frozen Foods is currently generating about -0.07 per unit of risk. If you would invest 2,221 in SAL Steel Limited on August 28, 2024 and sell it today you would earn a total of 213.00 from holding SAL Steel Limited or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAL Steel Limited vs. Apex Frozen Foods
Performance |
| Timeline |
| SAL Steel Limited |
| Apex Frozen Foods |
SAL Steel and Apex Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAL Steel and Apex Frozen
The main advantage of trading using opposite SAL Steel and Apex Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAL Steel position performs unexpectedly, Apex Frozen 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 Apex Frozen will offset losses from the drop in Apex Frozen's long position.| SAL Steel vs. Embassy Office Parks | SAL Steel vs. Gujarat Narmada Valley | SAL Steel vs. Gujarat Alkalies and | SAL Steel vs. JTL Industries |
| Apex Frozen vs. SAL Steel Limited | Apex Frozen vs. Tata Steel Limited | Apex Frozen vs. Steelcast Limited | Apex Frozen vs. Neogen Chemicals 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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