Correlation Between SAL Steel and Manaksia Steels
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By analyzing existing cross correlation between SAL Steel Limited and Manaksia Steels Limited, you can compare the effects of market volatilities on SAL Steel and Manaksia Steels 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 Manaksia Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAL Steel and Manaksia Steels.
Diversification Opportunities for SAL Steel and Manaksia Steels
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SAL and Manaksia is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SAL Steel Limited and Manaksia Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Steels 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 Manaksia Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Steels has no effect on the direction of SAL Steel i.e., SAL Steel and Manaksia Steels go up and down completely randomly.
Pair Corralation between SAL Steel and Manaksia Steels
Assuming the 90 days trading horizon SAL Steel Limited is expected to generate 1.06 times more return on investment than Manaksia Steels. However, SAL Steel is 1.06 times more volatile than Manaksia Steels Limited. It trades about -0.03 of its potential returns per unit of risk. Manaksia Steels Limited is currently generating about -0.03 per unit of risk. If you would invest 2,925 in SAL Steel Limited on November 8, 2024 and sell it today you would lose (868.00) from holding SAL Steel Limited or give up 29.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAL Steel Limited vs. Manaksia Steels Limited
Performance |
| Timeline |
| SAL Steel Limited |
| Manaksia Steels |
SAL Steel and Manaksia Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAL Steel and Manaksia Steels
The main advantage of trading using opposite SAL Steel and Manaksia Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAL Steel position performs unexpectedly, Manaksia Steels 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 Manaksia Steels will offset losses from the drop in Manaksia Steels' long position.| SAL Steel vs. Hathway Cable Datacom | SAL Steel vs. Lemon Tree Hotels | SAL Steel vs. Ravi Kumar Distilleries | SAL Steel vs. Advani Hotels Resorts |
| Manaksia Steels vs. The State Trading | Manaksia Steels vs. ROUTE MOBILE LIMITED | Manaksia Steels vs. HDFC Asset Management | Manaksia Steels vs. Tamilnadu Telecommunication 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 Stocks Directory module to find actively traded stocks across global markets.
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