Correlation Between Sasken Technologies and Caplin Point
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By analyzing existing cross correlation between Sasken Technologies Limited and Caplin Point Laboratories, you can compare the effects of market volatilities on Sasken Technologies and Caplin Point 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 Sasken Technologies with a short position of Caplin Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and Caplin Point.
Diversification Opportunities for Sasken Technologies and Caplin Point
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sasken and Caplin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and Caplin Point Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caplin Point Laboratories and Sasken Technologies 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 Sasken Technologies Limited are associated (or correlated) with Caplin Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caplin Point Laboratories has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and Caplin Point go up and down completely randomly.
Pair Corralation between Sasken Technologies and Caplin Point
Assuming the 90 days trading horizon Sasken Technologies Limited is expected to generate 1.22 times more return on investment than Caplin Point. However, Sasken Technologies is 1.22 times more volatile than Caplin Point Laboratories. It trades about 0.17 of its potential returns per unit of risk. Caplin Point Laboratories is currently generating about 0.15 per unit of risk. If you would invest 150,669 in Sasken Technologies Limited on September 12, 2024 and sell it today you would earn a total of 55,431 from holding Sasken Technologies Limited or generate 36.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasken Technologies Limited vs. Caplin Point Laboratories
Performance |
| Timeline |
| Sasken Technologies |
| Caplin Point Laboratories |
Sasken Technologies and Caplin Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasken Technologies and Caplin Point
The main advantage of trading using opposite Sasken Technologies and Caplin Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, Caplin Point 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 Caplin Point will offset losses from the drop in Caplin Point's long position.| Sasken Technologies vs. Vodafone Idea Limited | Sasken Technologies vs. Yes Bank Limited | Sasken Technologies vs. Indian Overseas Bank | Sasken Technologies vs. Indian Oil |
| Caplin Point vs. Sambhaav Media Limited | Caplin Point vs. Radaan Mediaworks India | Caplin Point vs. Praxis Home Retail | Caplin Point vs. Zee Entertainment Enterprises |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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