Correlation Between State Trading and MRF
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By analyzing existing cross correlation between The State Trading and MRF Limited, you can compare the effects of market volatilities on State Trading 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 State Trading with a short position of MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Trading and MRF.
Diversification Opportunities for State Trading and MRF
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and MRF is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The State Trading and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF Limited and State Trading 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 The State Trading 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 State Trading i.e., State Trading and MRF go up and down completely randomly.
Pair Corralation between State Trading and MRF
Assuming the 90 days trading horizon State Trading is expected to generate 2.09 times less return on investment than MRF. In addition to that, State Trading is 3.72 times more volatile than MRF Limited. It trades about 0.07 of its total potential returns per unit of risk. MRF Limited is currently generating about 0.52 per unit of volatility. If you would invest 12,092,400 in MRF Limited on September 13, 2024 and sell it today you would earn a total of 1,159,300 from holding MRF Limited or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The State Trading vs. MRF Limited
Performance |
| Timeline |
| State Trading |
| MRF Limited |
State Trading and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Trading and MRF
The main advantage of trading using opposite State Trading and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Trading 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.| State Trading vs. Yes Bank Limited | State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries | State Trading vs. GACM Technologies Limited |
| MRF vs. Bajaj Holdings Investment | MRF vs. The Investment Trust | MRF vs. POWERGRID Infrastructure Investment | MRF vs. Jindal Poly Investment |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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