Correlation Between Salzer Electronics and Suzlon Energy
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By analyzing existing cross correlation between Salzer Electronics Limited and Suzlon Energy Limited, you can compare the effects of market volatilities on Salzer Electronics and Suzlon Energy 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 Suzlon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Suzlon Energy.
Diversification Opportunities for Salzer Electronics and Suzlon Energy
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salzer and Suzlon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Suzlon Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzlon Energy 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 Suzlon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzlon Energy Limited has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Suzlon Energy go up and down completely randomly.
Pair Corralation between Salzer Electronics and Suzlon Energy
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to under-perform the Suzlon Energy. In addition to that, Salzer Electronics is 1.24 times more volatile than Suzlon Energy Limited. It trades about -0.14 of its total potential returns per unit of risk. Suzlon Energy Limited is currently generating about -0.09 per unit of volatility. If you would invest 6,292 in Suzlon Energy Limited on November 3, 2024 and sell it today you would lose (475.00) from holding Suzlon Energy Limited or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Suzlon Energy Limited
Performance |
| Timeline |
| Salzer Electronics |
| Suzlon Energy Limited |
Salzer Electronics and Suzlon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Suzlon Energy
The main advantage of trading using opposite Salzer Electronics and Suzlon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Suzlon Energy 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 Suzlon Energy will offset losses from the drop in Suzlon Energy's long position.| Salzer Electronics vs. Kingfa Science Technology | Salzer Electronics vs. Rico Auto Industries | Salzer Electronics vs. GACM Technologies Limited | Salzer Electronics vs. COSMO FIRST LIMITED |
| Suzlon Energy vs. Varun Beverages Limited | Suzlon Energy vs. Hisar Metal Industries | Suzlon Energy vs. Industrial Investment Trust | Suzlon Energy vs. Ortel Communications 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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