Correlation Between Sanginita Chemicals and SAL Steel
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By analyzing existing cross correlation between Sanginita Chemicals Limited and SAL Steel Limited, you can compare the effects of market volatilities on Sanginita Chemicals and SAL Steel 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 SAL Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanginita Chemicals and SAL Steel.
Diversification Opportunities for Sanginita Chemicals and SAL Steel
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sanginita and SAL is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sanginita Chemicals Limited and SAL Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAL Steel 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 SAL Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAL Steel Limited has no effect on the direction of Sanginita Chemicals i.e., Sanginita Chemicals and SAL Steel go up and down completely randomly.
Pair Corralation between Sanginita Chemicals and SAL Steel
Assuming the 90 days trading horizon Sanginita Chemicals Limited is expected to generate 0.6 times more return on investment than SAL Steel. However, Sanginita Chemicals Limited is 1.66 times less risky than SAL Steel. It trades about 0.02 of its potential returns per unit of risk. SAL Steel Limited is currently generating about -0.03 per unit of risk. If you would invest 1,529 in Sanginita Chemicals Limited on August 26, 2024 and sell it today you would earn a total of 8.00 from holding Sanginita Chemicals Limited or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanginita Chemicals Limited vs. SAL Steel Limited
Performance |
| Timeline |
| Sanginita Chemicals |
| SAL Steel Limited |
Sanginita Chemicals and SAL Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanginita Chemicals and SAL Steel
The main advantage of trading using opposite Sanginita Chemicals and SAL Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanginita Chemicals position performs unexpectedly, SAL Steel 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 SAL Steel will offset losses from the drop in SAL Steel's 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 |
| SAL Steel vs. Electronics Mart India | SAL Steel vs. Dhampur Bio Organics | SAL Steel vs. Sanginita Chemicals Limited | SAL Steel vs. Fine Organic Industries |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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