Correlation Between S P and Premier Polyfilm
Specify exactly 2 symbols:
By analyzing existing cross correlation between S P Apparels and Premier Polyfilm Limited, you can compare the effects of market volatilities on S P and Premier Polyfilm 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 S P with a short position of Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of S P and Premier Polyfilm.
Diversification Opportunities for S P and Premier Polyfilm
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPAL and Premier is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding S P Apparels and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm and S P 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 S P Apparels are associated (or correlated) with Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of S P i.e., S P and Premier Polyfilm go up and down completely randomly.
Pair Corralation between S P and Premier Polyfilm
Assuming the 90 days trading horizon S P Apparels is expected to generate 1.85 times more return on investment than Premier Polyfilm. However, S P is 1.85 times more volatile than Premier Polyfilm Limited. It trades about -0.12 of its potential returns per unit of risk. Premier Polyfilm Limited is currently generating about -0.64 per unit of risk. If you would invest 91,150 in S P Apparels on November 3, 2024 and sell it today you would lose (8,830) from holding S P Apparels or give up 9.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
S P Apparels vs. Premier Polyfilm Limited
Performance |
| Timeline |
| S P Apparels |
| Premier Polyfilm |
S P and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S P and Premier Polyfilm
The main advantage of trading using opposite S P and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S P position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| S P vs. Manaksia Coated Metals | S P vs. Hindustan Copper Limited | S P vs. Can Fin Homes | S P vs. Allied Blenders Distillers |
| Premier Polyfilm vs. Manaksia Coated Metals | Premier Polyfilm vs. Cartrade Tech Limited | Premier Polyfilm vs. LLOYDS METALS AND | Premier Polyfilm vs. Rajnandini Metal 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |