Correlation Between SIL Investments and Sakar Healthcare
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By analyzing existing cross correlation between SIL Investments Limited and Sakar Healthcare Limited, you can compare the effects of market volatilities on SIL Investments and Sakar Healthcare 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 Sakar Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIL Investments and Sakar Healthcare.
Diversification Opportunities for SIL Investments and Sakar Healthcare
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIL and Sakar is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SIL Investments Limited and Sakar Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakar Healthcare 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 Sakar Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakar Healthcare has no effect on the direction of SIL Investments i.e., SIL Investments and Sakar Healthcare go up and down completely randomly.
Pair Corralation between SIL Investments and Sakar Healthcare
Assuming the 90 days trading horizon SIL Investments Limited is expected to generate 1.54 times more return on investment than Sakar Healthcare. However, SIL Investments is 1.54 times more volatile than Sakar Healthcare Limited. It trades about -0.03 of its potential returns per unit of risk. Sakar Healthcare Limited is currently generating about -0.06 per unit of risk. If you would invest 59,910 in SIL Investments Limited on November 28, 2024 and sell it today you would lose (11,425) from holding SIL Investments Limited or give up 19.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIL Investments Limited vs. Sakar Healthcare Limited
Performance |
| Timeline |
| SIL Investments |
| Sakar Healthcare |
SIL Investments and Sakar Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIL Investments and Sakar Healthcare
The main advantage of trading using opposite SIL Investments and Sakar Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIL Investments position performs unexpectedly, Sakar Healthcare 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 Sakar Healthcare will offset losses from the drop in Sakar Healthcare's long position.| SIL Investments vs. Dev Information Technology | SIL Investments vs. Nucleus Software Exports | SIL Investments vs. LT Technology Services | SIL Investments vs. Elin Electronics 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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