Correlation Between Sanginita Chemicals and India Glycols
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By analyzing existing cross correlation between Sanginita Chemicals Limited and India Glycols Limited, you can compare the effects of market volatilities on Sanginita Chemicals and India Glycols 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 Sanginita Chemicals with a short position of India Glycols. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanginita Chemicals and India Glycols.
Diversification Opportunities for Sanginita Chemicals and India Glycols
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanginita and India is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sanginita Chemicals Limited and India Glycols Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on India Glycols Limited and Sanginita Chemicals 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 Sanginita Chemicals Limited are associated (or correlated) with India Glycols. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of India Glycols Limited has no effect on the direction of Sanginita Chemicals i.e., Sanginita Chemicals and India Glycols go up and down completely randomly.
Pair Corralation between Sanginita Chemicals and India Glycols
Assuming the 90 days trading horizon Sanginita Chemicals is expected to generate 9.63 times less return on investment than India Glycols. In addition to that, Sanginita Chemicals is 1.5 times more volatile than India Glycols Limited. It trades about 0.01 of its total potential returns per unit of risk. India Glycols Limited is currently generating about 0.09 per unit of volatility. If you would invest 61,842 in India Glycols Limited on August 31, 2024 and sell it today you would earn a total of 64,158 from holding India Glycols Limited or generate 103.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.91% |
| Values | Daily Returns |
Sanginita Chemicals Limited vs. India Glycols Limited
Performance |
| Timeline |
| Sanginita Chemicals |
| India Glycols Limited |
Sanginita Chemicals and India Glycols Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanginita Chemicals and India Glycols
The main advantage of trading using opposite Sanginita Chemicals and India Glycols positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanginita Chemicals position performs unexpectedly, India Glycols 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 India Glycols will offset losses from the drop in India Glycols' long position.| Sanginita Chemicals vs. NMDC Limited | Sanginita Chemicals vs. Steel Authority of | Sanginita Chemicals vs. Embassy Office Parks | Sanginita Chemicals vs. Gujarat Narmada Valley |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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