Correlation Between SIL Investments and HEG
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By analyzing existing cross correlation between SIL Investments Limited and HEG Limited, you can compare the effects of market volatilities on SIL Investments and HEG 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 SIL Investments with a short position of HEG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIL Investments and HEG.
Diversification Opportunities for SIL Investments and HEG
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SIL and HEG is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SIL Investments Limited and HEG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEG Limited and SIL Investments 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 SIL Investments Limited are associated (or correlated) with HEG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEG Limited has no effect on the direction of SIL Investments i.e., SIL Investments and HEG go up and down completely randomly.
Pair Corralation between SIL Investments and HEG
Assuming the 90 days trading horizon SIL Investments Limited is expected to generate 0.59 times more return on investment than HEG. However, SIL Investments Limited is 1.7 times less risky than HEG. It trades about -0.2 of its potential returns per unit of risk. HEG Limited is currently generating about -0.34 per unit of risk. If you would invest 69,970 in SIL Investments Limited on October 10, 2024 and sell it today you would lose (5,215) from holding SIL Investments Limited or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIL Investments Limited vs. HEG Limited
Performance |
| Timeline |
| SIL Investments |
| HEG Limited |
SIL Investments and HEG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIL Investments and HEG
The main advantage of trading using opposite SIL Investments and HEG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIL Investments position performs unexpectedly, HEG 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 HEG will offset losses from the drop in HEG's long position.| SIL Investments vs. R S Software | SIL Investments vs. Praxis Home Retail | SIL Investments vs. Reliance Communications Limited | SIL Investments vs. GM Breweries Limited |
| HEG vs. Electrosteel Castings Limited | HEG vs. Electronics Mart India | HEG vs. Cartrade Tech Limited | HEG vs. Cantabil Retail India |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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