Correlation Between STEEL EXCHANGE and Manaksia Steels
Specify exactly 2 symbols:
By analyzing existing cross correlation between STEEL EXCHANGE INDIA and Manaksia Steels Limited, you can compare the effects of market volatilities on STEEL EXCHANGE and Manaksia Steels 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 Manaksia Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of STEEL EXCHANGE and Manaksia Steels.
Diversification Opportunities for STEEL EXCHANGE and Manaksia Steels
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STEEL and Manaksia is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding STEEL EXCHANGE INDIA and Manaksia Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Steels 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 Manaksia Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Steels has no effect on the direction of STEEL EXCHANGE i.e., STEEL EXCHANGE and Manaksia Steels go up and down completely randomly.
Pair Corralation between STEEL EXCHANGE and Manaksia Steels
Assuming the 90 days trading horizon STEEL EXCHANGE INDIA is expected to generate 0.71 times more return on investment than Manaksia Steels. However, STEEL EXCHANGE INDIA is 1.41 times less risky than Manaksia Steels. It trades about -0.1 of its potential returns per unit of risk. Manaksia Steels Limited is currently generating about -0.14 per unit of risk. If you would invest 1,104 in STEEL EXCHANGE INDIA on August 29, 2024 and sell it today you would lose (42.00) from holding STEEL EXCHANGE INDIA or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STEEL EXCHANGE INDIA vs. Manaksia Steels Limited
Performance |
| Timeline |
| STEEL EXCHANGE INDIA |
| Manaksia Steels |
STEEL EXCHANGE and Manaksia Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STEEL EXCHANGE and Manaksia Steels
The main advantage of trading using opposite STEEL EXCHANGE and Manaksia Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEEL EXCHANGE position performs unexpectedly, Manaksia Steels 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 Manaksia Steels will offset losses from the drop in Manaksia Steels' long position.| STEEL EXCHANGE vs. Embassy Office Parks | STEEL EXCHANGE vs. Gujarat Narmada Valley | STEEL EXCHANGE vs. Gujarat Alkalies and | STEEL EXCHANGE vs. JTL Industries |
| Manaksia Steels vs. Embassy Office Parks | Manaksia Steels vs. Gujarat Narmada Valley | Manaksia Steels vs. Gujarat Alkalies and | Manaksia Steels vs. JTL Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |