Correlation Between Selan Exploration and Digjam
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By analyzing existing cross correlation between Selan Exploration Technology and Digjam Limited, you can compare the effects of market volatilities on Selan Exploration and Digjam 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 Selan Exploration with a short position of Digjam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selan Exploration and Digjam.
Diversification Opportunities for Selan Exploration and Digjam
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Selan and Digjam is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Selan Exploration Technology and Digjam Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digjam Limited and Selan Exploration 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 Selan Exploration Technology are associated (or correlated) with Digjam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digjam Limited has no effect on the direction of Selan Exploration i.e., Selan Exploration and Digjam go up and down completely randomly.
Pair Corralation between Selan Exploration and Digjam
Assuming the 90 days trading horizon Selan Exploration is expected to generate 8.27 times less return on investment than Digjam. In addition to that, Selan Exploration is 1.04 times more volatile than Digjam Limited. It trades about 0.01 of its total potential returns per unit of risk. Digjam Limited is currently generating about 0.1 per unit of volatility. If you would invest 8,575 in Digjam Limited on September 13, 2024 and sell it today you would earn a total of 455.00 from holding Digjam Limited or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selan Exploration Technology vs. Digjam Limited
Performance |
| Timeline |
| Selan Exploration |
| Digjam Limited |
Selan Exploration and Digjam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selan Exploration and Digjam
The main advantage of trading using opposite Selan Exploration and Digjam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selan Exploration position performs unexpectedly, Digjam 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 Digjam will offset losses from the drop in Digjam's long position.| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. State Bank of | Selan Exploration vs. Zomato Limited |
| Digjam vs. Gujarat Fluorochemicals Limited | Digjam vs. The Federal Bank | Digjam vs. Sudarshan Chemical Industries | Digjam vs. Tamilnad Mercantile Bank |
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 Directory module to find actively traded commodities issued by global exchanges.
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