Correlation Between Sintex Plastics and Agro Tech
Can any of the company-specific risk be diversified away by investing in both Sintex Plastics and Agro Tech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sintex Plastics and Agro Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sintex Plastics Technology and Agro Tech Foods, you can compare the effects of market volatilities on Sintex Plastics and Agro Tech 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 Sintex Plastics with a short position of Agro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sintex Plastics and Agro Tech.
Diversification Opportunities for Sintex Plastics and Agro Tech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sintex and Agro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sintex Plastics Technology and Agro Tech Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Tech Foods and Sintex Plastics 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 Sintex Plastics Technology are associated (or correlated) with Agro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Tech Foods has no effect on the direction of Sintex Plastics i.e., Sintex Plastics and Agro Tech go up and down completely randomly.
Pair Corralation between Sintex Plastics and Agro Tech
Assuming the 90 days trading horizon Sintex Plastics Technology is expected to under-perform the Agro Tech. But the stock apears to be less risky and, when comparing its historical volatility, Sintex Plastics Technology is 1.17 times less risky than Agro Tech. The stock trades about -0.02 of its potential returns per unit of risk. The Agro Tech Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 77,571 in Agro Tech Foods on September 2, 2024 and sell it today you would earn a total of 16,244 from holding Agro Tech Foods or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sintex Plastics Technology vs. Agro Tech Foods
Performance |
| Timeline |
| Sintex Plastics Tech |
| Agro Tech Foods |
Sintex Plastics and Agro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sintex Plastics and Agro Tech
The main advantage of trading using opposite Sintex Plastics and Agro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sintex Plastics position performs unexpectedly, Agro Tech 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 Agro Tech will offset losses from the drop in Agro Tech's long position.| Sintex Plastics vs. Diligent Media | Sintex Plastics vs. Shree Pushkar Chemicals | Sintex Plastics vs. Bodhi Tree Multimedia | Sintex Plastics vs. Hindcon Chemicals Limited |
| Agro Tech vs. Steelcast Limited | Agro Tech vs. NMDC Steel Limited | Agro Tech vs. HDFC Life Insurance | Agro Tech vs. MSP Steel Power |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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