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
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sasken and Caplin is 0.64. 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 is expected to generate 1.25 times less return on investment than Caplin Point. But when comparing it to its historical volatility, Sasken Technologies Limited is 1.09 times less risky than Caplin Point. It trades about 0.07 of its potential returns per unit of risk. Caplin Point Laboratories is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 154,366 in Caplin Point Laboratories on November 3, 2024 and sell it today you would earn a total of 48,729 from holding Caplin Point Laboratories or generate 31.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| 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. Visa Steel Limited | Sasken Technologies vs. Megastar Foods Limited | Sasken Technologies vs. Mahamaya Steel Industries | Sasken Technologies vs. Sapphire Foods India |
| Caplin Point vs. Foods Inns Limited | Caplin Point vs. Kewal Kiran Clothing | Caplin Point vs. Jindal Poly Investment | Caplin Point vs. Nalwa Sons Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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