Correlation Between Sasken Technologies and HDFC Asset
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By analyzing existing cross correlation between Sasken Technologies Limited and HDFC Asset Management, you can compare the effects of market volatilities on Sasken Technologies and HDFC Asset 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 HDFC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and HDFC Asset.
Diversification Opportunities for Sasken Technologies and HDFC Asset
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sasken and HDFC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and HDFC Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HDFC Asset Management 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 HDFC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HDFC Asset Management has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and HDFC Asset go up and down completely randomly.
Pair Corralation between Sasken Technologies and HDFC Asset
Assuming the 90 days trading horizon Sasken Technologies Limited is expected to generate 1.58 times more return on investment than HDFC Asset. However, Sasken Technologies is 1.58 times more volatile than HDFC Asset Management. It trades about 0.46 of its potential returns per unit of risk. HDFC Asset Management is currently generating about -0.05 per unit of risk. If you would invest 168,575 in Sasken Technologies Limited on August 29, 2024 and sell it today you would earn a total of 54,290 from holding Sasken Technologies Limited or generate 32.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sasken Technologies Limited vs. HDFC Asset Management
Performance |
| Timeline |
| Sasken Technologies |
| HDFC Asset Management |
Sasken Technologies and HDFC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasken Technologies and HDFC Asset
The main advantage of trading using opposite Sasken Technologies and HDFC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, HDFC Asset 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 HDFC Asset will offset losses from the drop in HDFC Asset's long position.| Sasken Technologies vs. Reliance Industries Limited | Sasken Technologies vs. Life Insurance | Sasken Technologies vs. India Glycols Limited | Sasken Technologies vs. Indo Borax Chemicals |
| HDFC Asset vs. MRF Limited | HDFC Asset vs. Nalwa Sons Investments | HDFC Asset vs. Kalyani Investment | HDFC Asset vs. Pilani Investment and |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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