Correlation Between Spencers Retail and MRF
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By analyzing existing cross correlation between Spencers Retail Limited and MRF Limited, you can compare the effects of market volatilities on Spencers Retail and MRF 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 Spencers Retail with a short position of MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and MRF.
Diversification Opportunities for Spencers Retail and MRF
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spencers and MRF is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF Limited and Spencers Retail 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 Spencers Retail Limited are associated (or correlated) with MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Spencers Retail i.e., Spencers Retail and MRF go up and down completely randomly.
Pair Corralation between Spencers Retail and MRF
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 2.73 times more return on investment than MRF. However, Spencers Retail is 2.73 times more volatile than MRF Limited. It trades about 0.04 of its potential returns per unit of risk. MRF Limited is currently generating about 0.06 per unit of risk. If you would invest 6,310 in Spencers Retail Limited on September 2, 2024 and sell it today you would earn a total of 2,247 from holding Spencers Retail Limited or generate 35.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Spencers Retail Limited vs. MRF Limited
Performance |
| Timeline |
| Spencers Retail |
| MRF Limited |
Spencers Retail and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and MRF
The main advantage of trading using opposite Spencers Retail and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF's long position.| Spencers Retail vs. Kingfa Science Technology | Spencers Retail vs. Rico Auto Industries | Spencers Retail vs. GACM Technologies Limited | Spencers Retail vs. COSMO FIRST LIMITED |
| MRF vs. Apollo Sindoori Hotels | MRF vs. Baazar Style Retail | MRF vs. Lemon Tree Hotels | MRF vs. Kamat Hotels 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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