Correlation Between Sasken Technologies and Tata Steel
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By analyzing existing cross correlation between Sasken Technologies Limited and Tata Steel Limited, you can compare the effects of market volatilities on Sasken Technologies and Tata Steel 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 Tata Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and Tata Steel.
Diversification Opportunities for Sasken Technologies and Tata Steel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sasken and Tata is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and Tata Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tata Steel 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 Tata Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tata Steel Limited has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and Tata Steel go up and down completely randomly.
Pair Corralation between Sasken Technologies and Tata Steel
Assuming the 90 days trading horizon Sasken Technologies Limited is expected to generate 1.58 times more return on investment than Tata Steel. However, Sasken Technologies is 1.58 times more volatile than Tata Steel Limited. It trades about 0.1 of its potential returns per unit of risk. Tata Steel Limited is currently generating about 0.04 per unit of risk. If you would invest 118,444 in Sasken Technologies Limited on September 4, 2024 and sell it today you would earn a total of 102,776 from holding Sasken Technologies Limited or generate 86.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sasken Technologies Limited vs. Tata Steel Limited
Performance |
| Timeline |
| Sasken Technologies |
| Tata Steel Limited |
Sasken Technologies and Tata Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sasken Technologies and Tata Steel
The main advantage of trading using opposite Sasken Technologies and Tata Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, Tata Steel 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 Tata Steel will offset losses from the drop in Tata Steel's long position.| Sasken Technologies vs. HMT Limited | Sasken Technologies vs. KIOCL Limited | Sasken Technologies vs. Spentex Industries Limited | Sasken Technologies vs. Punjab Sind Bank |
| Tata Steel vs. Alkali Metals Limited | Tata Steel vs. PYRAMID TECHNOPLAST ORD | Tata Steel vs. Sasken Technologies Limited | Tata Steel vs. Jaypee Infratech Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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