Correlation Between Sasken Technologies and NIIT
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By analyzing existing cross correlation between Sasken Technologies Limited and NIIT Limited, you can compare the effects of market volatilities on Sasken Technologies and NIIT 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 NIIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and NIIT.
Diversification Opportunities for Sasken Technologies and NIIT
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sasken and NIIT is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and NIIT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIIT 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 NIIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIIT Limited has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and NIIT go up and down completely randomly.
Pair Corralation between Sasken Technologies and NIIT
Assuming the 90 days trading horizon Sasken Technologies Limited is expected to generate 0.82 times more return on investment than NIIT. However, Sasken Technologies Limited is 1.22 times less risky than NIIT. It trades about 0.09 of its potential returns per unit of risk. NIIT Limited is currently generating about 0.07 per unit of risk. If you would invest 112,444 in Sasken Technologies Limited on September 24, 2024 and sell it today you would earn a total of 95,616 from holding Sasken Technologies Limited or generate 85.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasken Technologies Limited vs. NIIT Limited
Performance |
| Timeline |
| Sasken Technologies |
| NIIT Limited |
Sasken Technologies and NIIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasken Technologies and NIIT
The main advantage of trading using opposite Sasken Technologies and NIIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, NIIT 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 NIIT will offset losses from the drop in NIIT's long position.| Sasken Technologies vs. State Bank of | Sasken Technologies vs. Life Insurance | Sasken Technologies vs. HDFC Bank Limited | Sasken Technologies vs. ICICI Bank Limited |
| NIIT vs. FCS Software Solutions | NIIT vs. Sasken Technologies Limited | NIIT vs. Kalyani Steels Limited | NIIT vs. Newgen Software Technologies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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