Correlation Between Steelcast and STEEL EXCHANGE
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By analyzing existing cross correlation between Steelcast Limited and STEEL EXCHANGE INDIA, you can compare the effects of market volatilities on Steelcast and STEEL EXCHANGE 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 STEEL EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and STEEL EXCHANGE.
Diversification Opportunities for Steelcast and STEEL EXCHANGE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steelcast and STEEL is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited and STEEL EXCHANGE INDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STEEL EXCHANGE INDIA 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 STEEL EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STEEL EXCHANGE INDIA has no effect on the direction of Steelcast i.e., Steelcast and STEEL EXCHANGE go up and down completely randomly.
Pair Corralation between Steelcast and STEEL EXCHANGE
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 1.34 times more return on investment than STEEL EXCHANGE. However, Steelcast is 1.34 times more volatile than STEEL EXCHANGE INDIA. It trades about 0.04 of its potential returns per unit of risk. STEEL EXCHANGE INDIA is currently generating about -0.21 per unit of risk. If you would invest 74,890 in Steelcast Limited on August 25, 2024 and sell it today you would earn a total of 1,315 from holding Steelcast Limited or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Steelcast Limited vs. STEEL EXCHANGE INDIA
Performance |
| Timeline |
| Steelcast Limited |
| STEEL EXCHANGE INDIA |
Steelcast and STEEL EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and STEEL EXCHANGE
The main advantage of trading using opposite Steelcast and STEEL EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast position performs unexpectedly, STEEL EXCHANGE 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 STEEL EXCHANGE will offset losses from the drop in STEEL EXCHANGE's long position.| Steelcast vs. NMDC Limited | Steelcast vs. Steel Authority of | Steelcast vs. Embassy Office Parks | Steelcast vs. Gujarat Narmada Valley |
| STEEL EXCHANGE vs. Foods Inns Limited | STEEL EXCHANGE vs. Beta Drugs | STEEL EXCHANGE vs. Sarveshwar Foods Limited | STEEL EXCHANGE vs. Computer Age Management |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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