Correlation Between Spencers Retail and STEEL EXCHANGE
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By analyzing existing cross correlation between Spencers Retail Limited and STEEL EXCHANGE INDIA, you can compare the effects of market volatilities on Spencers Retail and STEEL EXCHANGE 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 STEEL EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and STEEL EXCHANGE.
Diversification Opportunities for Spencers Retail and STEEL EXCHANGE
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spencers and STEEL is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and STEEL EXCHANGE INDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STEEL EXCHANGE INDIA 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 STEEL EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STEEL EXCHANGE INDIA has no effect on the direction of Spencers Retail i.e., Spencers Retail and STEEL EXCHANGE go up and down completely randomly.
Pair Corralation between Spencers Retail and STEEL EXCHANGE
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 1.19 times more return on investment than STEEL EXCHANGE. However, Spencers Retail is 1.19 times more volatile than STEEL EXCHANGE INDIA. It trades about -0.04 of its potential returns per unit of risk. STEEL EXCHANGE INDIA is currently generating about -0.06 per unit of risk. If you would invest 12,415 in Spencers Retail Limited on November 3, 2024 and sell it today you would lose (4,402) from holding Spencers Retail Limited or give up 35.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. STEEL EXCHANGE INDIA
Performance |
| Timeline |
| Spencers Retail |
| STEEL EXCHANGE INDIA |
Spencers Retail and STEEL EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and STEEL EXCHANGE
The main advantage of trading using opposite Spencers Retail and STEEL EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, STEEL EXCHANGE 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 STEEL EXCHANGE will offset losses from the drop in STEEL EXCHANGE's long position.| Spencers Retail vs. Speciality Restaurants Limited | Spencers Retail vs. Lotus Eye Hospital | Spencers Retail vs. PB Fintech Limited | Spencers Retail vs. Medplus Health Services |
| STEEL EXCHANGE vs. The Indian Hotels | STEEL EXCHANGE vs. Juniper Hotels | STEEL EXCHANGE vs. Chalet Hotels Limited | STEEL EXCHANGE vs. Viceroy 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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