Correlation Between STEEL EXCHANGE and Future Retail
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By analyzing existing cross correlation between STEEL EXCHANGE INDIA and Future Retail Limited, you can compare the effects of market volatilities on STEEL EXCHANGE and Future Retail 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 STEEL EXCHANGE with a short position of Future Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of STEEL EXCHANGE and Future Retail.
Diversification Opportunities for STEEL EXCHANGE and Future Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STEEL and Future is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STEEL EXCHANGE INDIA and Future Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Retail Limited and STEEL EXCHANGE 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 STEEL EXCHANGE INDIA are associated (or correlated) with Future Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Retail Limited has no effect on the direction of STEEL EXCHANGE i.e., STEEL EXCHANGE and Future Retail go up and down completely randomly.
Pair Corralation between STEEL EXCHANGE and Future Retail
Assuming the 90 days trading horizon STEEL EXCHANGE INDIA is expected to under-perform the Future Retail. In addition to that, STEEL EXCHANGE is 1.38 times more volatile than Future Retail Limited. It trades about -0.06 of its total potential returns per unit of risk. Future Retail Limited is currently generating about -0.04 per unit of volatility. If you would invest 285.00 in Future Retail Limited on November 3, 2024 and sell it today you would lose (57.00) from holding Future Retail Limited or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.73% |
| Values | Daily Returns |
STEEL EXCHANGE INDIA vs. Future Retail Limited
Performance |
| Timeline |
| STEEL EXCHANGE INDIA |
| Future Retail Limited |
STEEL EXCHANGE and Future Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STEEL EXCHANGE and Future Retail
The main advantage of trading using opposite STEEL EXCHANGE and Future Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEEL EXCHANGE position performs unexpectedly, Future Retail 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 Future Retail will offset losses from the drop in Future Retail's long position.| STEEL EXCHANGE vs. The Indian Hotels | STEEL EXCHANGE vs. Juniper Hotels | STEEL EXCHANGE vs. Chalet Hotels Limited | STEEL EXCHANGE vs. Viceroy Hotels Limited |
| Future Retail vs. Union Bank of | Future Retail vs. IDBI Bank Limited | Future Retail vs. Sintex Plastics Technology | Future Retail vs. General Insurance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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