Correlation Between Salzer Electronics and Prakash Steelage
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By analyzing existing cross correlation between Salzer Electronics Limited and Prakash Steelage Limited, you can compare the effects of market volatilities on Salzer Electronics and Prakash Steelage 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 Prakash Steelage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Prakash Steelage.
Diversification Opportunities for Salzer Electronics and Prakash Steelage
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salzer and Prakash is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Prakash Steelage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prakash Steelage 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 Prakash Steelage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prakash Steelage has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Prakash Steelage go up and down completely randomly.
Pair Corralation between Salzer Electronics and Prakash Steelage
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 0.96 times more return on investment than Prakash Steelage. However, Salzer Electronics Limited is 1.04 times less risky than Prakash Steelage. It trades about 0.11 of its potential returns per unit of risk. Prakash Steelage Limited is currently generating about 0.05 per unit of risk. If you would invest 30,343 in Salzer Electronics Limited on October 14, 2024 and sell it today you would earn a total of 106,827 from holding Salzer Electronics Limited or generate 352.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Prakash Steelage Limited
Performance |
| Timeline |
| Salzer Electronics |
| Prakash Steelage |
Salzer Electronics and Prakash Steelage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Prakash Steelage
The main advantage of trading using opposite Salzer Electronics and Prakash Steelage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Prakash Steelage 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 Prakash Steelage will offset losses from the drop in Prakash Steelage's long position.| Salzer Electronics vs. Shyam Metalics and | Salzer Electronics vs. Teamlease Services Limited | Salzer Electronics vs. Nahar Industrial Enterprises | Salzer Electronics vs. Patanjali Foods Limited |
| Prakash Steelage vs. SBI Life Insurance | Prakash Steelage vs. Centum Electronics Limited | Prakash Steelage vs. Salzer Electronics Limited | Prakash Steelage vs. Entertainment Network 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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