Correlation Between Salzer Electronics and Coal India
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By analyzing existing cross correlation between Salzer Electronics Limited and Coal India Limited, you can compare the effects of market volatilities on Salzer Electronics and Coal India 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 Salzer Electronics with a short position of Coal India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Coal India.
Diversification Opportunities for Salzer Electronics and Coal India
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salzer and Coal is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Coal India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coal India Limited and Salzer Electronics 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 Salzer Electronics Limited are associated (or correlated) with Coal India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coal India Limited has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Coal India go up and down completely randomly.
Pair Corralation between Salzer Electronics and Coal India
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to under-perform the Coal India. In addition to that, Salzer Electronics is 1.99 times more volatile than Coal India Limited. It trades about -0.12 of its total potential returns per unit of risk. Coal India Limited is currently generating about 0.01 per unit of volatility. If you would invest 37,324 in Coal India Limited on November 6, 2024 and sell it today you would earn a total of 76.00 from holding Coal India Limited or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Coal India Limited
Performance |
| Timeline |
| Salzer Electronics |
| Coal India Limited |
Salzer Electronics and Coal India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Coal India
The main advantage of trading using opposite Salzer Electronics and Coal India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Coal India 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 Coal India will offset losses from the drop in Coal India's long position.| Salzer Electronics vs. Styrenix Performance Materials | Salzer Electronics vs. 21st Century Management | Salzer Electronics vs. Elgi Rubber | Salzer Electronics vs. Manaksia Steels Limited |
| Coal India vs. Music Broadcast Limited | Coal India vs. Fine Organic Industries | Coal India vs. Vinati Organics Limited | Coal India vs. Kohinoor Foods 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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