Correlation Between Silver Touch and Exide Industries
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By analyzing existing cross correlation between Silver Touch Technologies and Exide Industries Limited, you can compare the effects of market volatilities on Silver Touch and Exide Industries 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 Silver Touch with a short position of Exide Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Touch and Exide Industries.
Diversification Opportunities for Silver Touch and Exide Industries
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silver and Exide is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Silver Touch Technologies and Exide Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exide Industries and Silver Touch 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 Silver Touch Technologies are associated (or correlated) with Exide Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exide Industries has no effect on the direction of Silver Touch i.e., Silver Touch and Exide Industries go up and down completely randomly.
Pair Corralation between Silver Touch and Exide Industries
Assuming the 90 days trading horizon Silver Touch is expected to generate 1.16 times less return on investment than Exide Industries. But when comparing it to its historical volatility, Silver Touch Technologies is 1.01 times less risky than Exide Industries. It trades about 0.07 of its potential returns per unit of risk. Exide Industries Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18,323 in Exide Industries Limited on November 3, 2024 and sell it today you would earn a total of 19,127 from holding Exide Industries Limited or generate 104.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Silver Touch Technologies vs. Exide Industries Limited
Performance |
| Timeline |
| Silver Touch Technologies |
| Exide Industries |
Silver Touch and Exide Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Touch and Exide Industries
The main advantage of trading using opposite Silver Touch and Exide Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Touch position performs unexpectedly, Exide Industries 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 Exide Industries will offset losses from the drop in Exide Industries' long position.| Silver Touch vs. ROUTE MOBILE LIMITED | Silver Touch vs. The Byke Hospitality | Silver Touch vs. Dev Information Technology | Silver Touch vs. MEDI ASSIST HEALTHCARE |
| Exide Industries vs. Apollo Sindoori Hotels | Exide Industries vs. Blue Coast Hotels | Exide Industries vs. Taj GVK Hotels | Exide Industries vs. Advani Hotels Resorts |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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