Correlation Between Steelcast and Capacite Infraprojects
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By analyzing existing cross correlation between Steelcast Limited and Capacite Infraprojects Limited, you can compare the effects of market volatilities on Steelcast and Capacite Infraprojects 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 Capacite Infraprojects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and Capacite Infraprojects.
Diversification Opportunities for Steelcast and Capacite Infraprojects
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steelcast and Capacite is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited and Capacite Infraprojects Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capacite Infraprojects 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 Capacite Infraprojects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capacite Infraprojects has no effect on the direction of Steelcast i.e., Steelcast and Capacite Infraprojects go up and down completely randomly.
Pair Corralation between Steelcast and Capacite Infraprojects
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 0.97 times more return on investment than Capacite Infraprojects. However, Steelcast Limited is 1.03 times less risky than Capacite Infraprojects. It trades about 0.09 of its potential returns per unit of risk. Capacite Infraprojects Limited is currently generating about -0.03 per unit of risk. If you would invest 73,577 in Steelcast Limited on December 10, 2024 and sell it today you would earn a total of 22,543 from holding Steelcast Limited or generate 30.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steelcast Limited vs. Capacite Infraprojects Limited
Performance |
| Timeline |
| Steelcast Limited |
| Capacite Infraprojects |
Steelcast and Capacite Infraprojects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and Capacite Infraprojects
The main advantage of trading using opposite Steelcast and Capacite Infraprojects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast position performs unexpectedly, Capacite Infraprojects 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 Capacite Infraprojects will offset losses from the drop in Capacite Infraprojects' long position.| Steelcast vs. Blue Jet Healthcare | Steelcast vs. Entero Healthcare Solutions | Steelcast vs. SANOFI S HEALTHC | Steelcast vs. Orient Technologies Limited |
| Capacite Infraprojects vs. LLOYDS METALS AND | Capacite Infraprojects vs. MIC Electronics Limited | Capacite Infraprojects vs. Nucleus Software Exports | Capacite Infraprojects vs. Coffee Day Enterprises |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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