Correlation Between Steelcast and Hilton Metal
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By analyzing existing cross correlation between Steelcast Limited and Hilton Metal Forging, you can compare the effects of market volatilities on Steelcast and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and Hilton Metal.
Diversification Opportunities for Steelcast and Hilton Metal
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steelcast and Hilton is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of Steelcast i.e., Steelcast and Hilton Metal go up and down completely randomly.
Pair Corralation between Steelcast and Hilton Metal
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 1.19 times more return on investment than Hilton Metal. However, Steelcast is 1.19 times more volatile than Hilton Metal Forging. It trades about 0.05 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about 0.04 per unit of risk. If you would invest 75,818 in Steelcast Limited on August 29, 2024 and sell it today you would earn a total of 1,627 from holding Steelcast Limited or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steelcast Limited vs. Hilton Metal Forging
Performance |
| Timeline |
| Steelcast Limited |
| Hilton Metal Forging |
Steelcast and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and Hilton Metal
The main advantage of trading using opposite Steelcast and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| Steelcast vs. Embassy Office Parks | Steelcast vs. Gujarat Narmada Valley | Steelcast vs. Gujarat Alkalies and | Steelcast vs. JTL Industries |
| Hilton Metal vs. Reliance Industries Limited | Hilton Metal vs. Tata Consultancy Services | Hilton Metal vs. HDFC Bank Limited | Hilton Metal vs. Bharti Airtel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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