Correlation Between Styrenix Performance and Bosch
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By analyzing existing cross correlation between Styrenix Performance Materials and Bosch Limited, you can compare the effects of market volatilities on Styrenix Performance and Bosch 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 Styrenix Performance with a short position of Bosch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Styrenix Performance and Bosch.
Diversification Opportunities for Styrenix Performance and Bosch
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Styrenix and Bosch is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Styrenix Performance Materials and Bosch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Limited and Styrenix Performance 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 Styrenix Performance Materials are associated (or correlated) with Bosch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Limited has no effect on the direction of Styrenix Performance i.e., Styrenix Performance and Bosch go up and down completely randomly.
Pair Corralation between Styrenix Performance and Bosch
Assuming the 90 days trading horizon Styrenix Performance Materials is expected to generate 1.78 times more return on investment than Bosch. However, Styrenix Performance is 1.78 times more volatile than Bosch Limited. It trades about 0.12 of its potential returns per unit of risk. Bosch Limited is currently generating about 0.13 per unit of risk. If you would invest 95,794 in Styrenix Performance Materials on September 2, 2024 and sell it today you would earn a total of 156,391 from holding Styrenix Performance Materials or generate 163.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Styrenix Performance Materials vs. Bosch Limited
Performance |
| Timeline |
| Styrenix Performance |
| Bosch Limited |
Styrenix Performance and Bosch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Styrenix Performance and Bosch
The main advantage of trading using opposite Styrenix Performance and Bosch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Styrenix Performance position performs unexpectedly, Bosch 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 Bosch will offset losses from the drop in Bosch's long position.| Styrenix Performance vs. NMDC Limited | Styrenix Performance vs. Steel Authority of | Styrenix Performance vs. Embassy Office Parks | Styrenix Performance vs. Gujarat Narmada Valley |
| Bosch vs. Vraj Iron and | Bosch vs. Blue Coast Hotels | Bosch vs. Hindustan Construction | Bosch vs. Vibhor Steel Tubes |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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