Correlation Between Silver Touch and Bank of Maharashtra
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By analyzing existing cross correlation between Silver Touch Technologies and Bank of Maharashtra, you can compare the effects of market volatilities on Silver Touch and Bank of Maharashtra 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 Bank of Maharashtra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Touch and Bank of Maharashtra.
Diversification Opportunities for Silver Touch and Bank of Maharashtra
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silver and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Silver Touch Technologies and Bank of Maharashtra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Maharashtra 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 Bank of Maharashtra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Maharashtra has no effect on the direction of Silver Touch i.e., Silver Touch and Bank of Maharashtra go up and down completely randomly.
Pair Corralation between Silver Touch and Bank of Maharashtra
Assuming the 90 days trading horizon Silver Touch Technologies is expected to generate 0.58 times more return on investment than Bank of Maharashtra. However, Silver Touch Technologies is 1.74 times less risky than Bank of Maharashtra. It trades about 0.03 of its potential returns per unit of risk. Bank of Maharashtra is currently generating about -0.01 per unit of risk. If you would invest 67,884 in Silver Touch Technologies on September 3, 2024 and sell it today you would earn a total of 3,091 from holding Silver Touch Technologies or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Touch Technologies vs. Bank of Maharashtra
Performance |
| Timeline |
| Silver Touch Technologies |
| Bank of Maharashtra |
Silver Touch and Bank of Maharashtra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Touch and Bank of Maharashtra
The main advantage of trading using opposite Silver Touch and Bank of Maharashtra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Touch position performs unexpectedly, Bank of Maharashtra 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 Bank of Maharashtra will offset losses from the drop in Bank of Maharashtra's long position.| Silver Touch vs. Kingfa Science Technology | Silver Touch vs. Le Travenues Technology | Silver Touch vs. Elin Electronics Limited | Silver Touch vs. Selan Exploration Technology |
| Bank of Maharashtra vs. Reliance Industries Limited | Bank of Maharashtra vs. Shipping | Bank of Maharashtra vs. Indo Borax Chemicals | Bank of Maharashtra vs. Kingfa Science Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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