Correlation Between SAL Steel and Shaily Engineering
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By analyzing existing cross correlation between SAL Steel Limited and Shaily Engineering Plastics, you can compare the effects of market volatilities on SAL Steel and Shaily Engineering 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 Shaily Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAL Steel and Shaily Engineering.
Diversification Opportunities for SAL Steel and Shaily Engineering
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SAL and Shaily is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SAL Steel Limited and Shaily Engineering Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaily Engineering 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 Shaily Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaily Engineering has no effect on the direction of SAL Steel i.e., SAL Steel and Shaily Engineering go up and down completely randomly.
Pair Corralation between SAL Steel and Shaily Engineering
Assuming the 90 days trading horizon SAL Steel Limited is expected to under-perform the Shaily Engineering. But the stock apears to be less risky and, when comparing its historical volatility, SAL Steel Limited is 1.3 times less risky than Shaily Engineering. The stock trades about -0.01 of its potential returns per unit of risk. The Shaily Engineering Plastics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 93,895 in Shaily Engineering Plastics on August 28, 2024 and sell it today you would earn a total of 14,885 from holding Shaily Engineering Plastics or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SAL Steel Limited vs. Shaily Engineering Plastics
Performance |
| Timeline |
| SAL Steel Limited |
| Shaily Engineering |
SAL Steel and Shaily Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAL Steel and Shaily Engineering
The main advantage of trading using opposite SAL Steel and Shaily Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAL Steel position performs unexpectedly, Shaily Engineering 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 Shaily Engineering will offset losses from the drop in Shaily Engineering's long position.| SAL Steel vs. NMDC Limited | SAL Steel vs. Embassy Office Parks | SAL Steel vs. Gujarat Narmada Valley | SAL Steel vs. Gujarat Alkalies and |
| Shaily Engineering vs. Spencers Retail Limited | Shaily Engineering vs. SAL Steel Limited | Shaily Engineering vs. JSW Steel Limited | Shaily Engineering vs. Future Retail 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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