Correlation Between Sasken Technologies and HMT
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By analyzing existing cross correlation between Sasken Technologies Limited and HMT Limited, you can compare the effects of market volatilities on Sasken Technologies and HMT 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 HMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and HMT.
Diversification Opportunities for Sasken Technologies and HMT
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sasken and HMT is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and HMT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMT Limited 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 HMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMT Limited has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and HMT go up and down completely randomly.
Pair Corralation between Sasken Technologies and HMT
Assuming the 90 days trading horizon Sasken Technologies Limited is expected to generate 1.26 times more return on investment than HMT. However, Sasken Technologies is 1.26 times more volatile than HMT Limited. It trades about 0.27 of its potential returns per unit of risk. HMT Limited is currently generating about -0.03 per unit of risk. If you would invest 177,275 in Sasken Technologies Limited on September 12, 2024 and sell it today you would earn a total of 34,620 from holding Sasken Technologies Limited or generate 19.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasken Technologies Limited vs. HMT Limited
Performance |
| Timeline |
| Sasken Technologies |
| HMT Limited |
Sasken Technologies and HMT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasken Technologies and HMT
The main advantage of trading using opposite Sasken Technologies and HMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, HMT 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 HMT will offset losses from the drop in HMT's long position.| Sasken Technologies vs. Reliance Industries Limited | Sasken Technologies vs. Oil Natural Gas | Sasken Technologies vs. Indian Oil | Sasken Technologies vs. HDFC Bank Limited |
| HMT vs. Praxis Home Retail | HMT vs. Lakshmi Finance Industrial | HMT vs. Agarwal Industrial | HMT vs. NRB Industrial Bearings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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