Correlation Between Sasken Technologies and Dow Jones
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By analyzing existing cross correlation between Sasken Technologies Limited and Dow Jones Industrial, you can compare the effects of market volatilities on Sasken Technologies and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and Dow Jones.
Diversification Opportunities for Sasken Technologies and Dow Jones
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sasken and Dow is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and Dow Jones go up and down completely randomly.
Pair Corralation between Sasken Technologies and Dow Jones
Assuming the 90 days trading horizon Sasken Technologies Limited is expected to generate 3.64 times more return on investment than Dow Jones. However, Sasken Technologies is 3.64 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 96,383 in Sasken Technologies Limited on August 24, 2024 and sell it today you would earn a total of 115,452 from holding Sasken Technologies Limited or generate 119.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.19% |
| Values | Daily Returns |
Sasken Technologies Limited vs. Dow Jones Industrial
Performance |
| Timeline |
Sasken Technologies and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sasken Technologies Limited
Pair trading matchups for Sasken Technologies
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sasken Technologies and Dow Jones
The main advantage of trading using opposite Sasken Technologies and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Sasken Technologies vs. Divis Laboratories Limited | Sasken Technologies vs. Indo Borax Chemicals | Sasken Technologies vs. Kingfa Science Technology | Sasken Technologies vs. Alkali Metals Limited |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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