Correlation Between Steelcast and Automotive Stampings
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By analyzing existing cross correlation between Steelcast Limited and Automotive Stampings and, you can compare the effects of market volatilities on Steelcast and Automotive Stampings 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 Steelcast with a short position of Automotive Stampings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and Automotive Stampings.
Diversification Opportunities for Steelcast and Automotive Stampings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Steelcast and Automotive is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited and Automotive Stampings and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automotive Stampings and and Steelcast 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 Steelcast Limited are associated (or correlated) with Automotive Stampings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automotive Stampings and has no effect on the direction of Steelcast i.e., Steelcast and Automotive Stampings go up and down completely randomly.
Pair Corralation between Steelcast and Automotive Stampings
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 0.69 times more return on investment than Automotive Stampings. However, Steelcast Limited is 1.44 times less risky than Automotive Stampings. It trades about 0.12 of its potential returns per unit of risk. Automotive Stampings and is currently generating about -0.02 per unit of risk. If you would invest 79,960 in Steelcast Limited on September 28, 2024 and sell it today you would earn a total of 4,500 from holding Steelcast Limited or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Steelcast Limited vs. Automotive Stampings and
Performance |
| Timeline |
| Steelcast Limited |
| Automotive Stampings and |
Steelcast and Automotive Stampings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and Automotive Stampings
The main advantage of trading using opposite Steelcast and Automotive Stampings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast position performs unexpectedly, Automotive Stampings 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 Automotive Stampings will offset losses from the drop in Automotive Stampings' long position.| Steelcast vs. Thirumalai Chemicals Limited | Steelcast vs. Archean Chemical Industries | Steelcast vs. Yatharth Hospital Trauma | Steelcast vs. Sanginita Chemicals 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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