Correlation Between SIL Investments and Whirlpool
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By analyzing existing cross correlation between SIL Investments Limited and Whirlpool of India, you can compare the effects of market volatilities on SIL Investments and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIL Investments and Whirlpool.
Diversification Opportunities for SIL Investments and Whirlpool
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIL and Whirlpool is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SIL Investments Limited and Whirlpool of India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool of India 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool of India has no effect on the direction of SIL Investments i.e., SIL Investments and Whirlpool go up and down completely randomly.
Pair Corralation between SIL Investments and Whirlpool
Assuming the 90 days trading horizon SIL Investments Limited is expected to generate 1.67 times more return on investment than Whirlpool. However, SIL Investments is 1.67 times more volatile than Whirlpool of India. It trades about 0.1 of its potential returns per unit of risk. Whirlpool of India is currently generating about 0.04 per unit of risk. If you would invest 31,504 in SIL Investments Limited on September 12, 2024 and sell it today you would earn a total of 41,311 from holding SIL Investments Limited or generate 131.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.38% |
| Values | Daily Returns |
SIL Investments Limited vs. Whirlpool of India
Performance |
| Timeline |
| SIL Investments |
| Whirlpool of India |
SIL Investments and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIL Investments and Whirlpool
The main advantage of trading using opposite SIL Investments and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIL Investments position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| SIL Investments vs. Yes Bank Limited | SIL Investments vs. Indian Oil | SIL Investments vs. Indo Borax Chemicals | SIL Investments vs. Kingfa Science Technology |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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