Correlation Between Supreme Industries and Hisar Metal
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By analyzing existing cross correlation between Supreme Industries Limited and Hisar Metal Industries, you can compare the effects of market volatilities on Supreme Industries and Hisar 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 Supreme Industries with a short position of Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supreme Industries and Hisar Metal.
Diversification Opportunities for Supreme Industries and Hisar Metal
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Supreme and Hisar is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Supreme Industries Limited and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries and Supreme Industries 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 Supreme Industries Limited are associated (or correlated) with Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of Supreme Industries i.e., Supreme Industries and Hisar Metal go up and down completely randomly.
Pair Corralation between Supreme Industries and Hisar Metal
Assuming the 90 days trading horizon Supreme Industries Limited is expected to generate 1.11 times more return on investment than Hisar Metal. However, Supreme Industries is 1.11 times more volatile than Hisar Metal Industries. It trades about 0.15 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about -0.12 per unit of risk. If you would invest 435,000 in Supreme Industries Limited on September 2, 2024 and sell it today you would earn a total of 30,110 from holding Supreme Industries Limited or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Supreme Industries Limited vs. Hisar Metal Industries
Performance |
| Timeline |
| Supreme Industries |
| Hisar Metal Industries |
Supreme Industries and Hisar Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supreme Industries and Hisar Metal
The main advantage of trading using opposite Supreme Industries and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supreme Industries position performs unexpectedly, Hisar 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.| Supreme Industries vs. Hisar Metal Industries | Supreme Industries vs. Cyber Media Research | Supreme Industries vs. Indian Metals Ferro | Supreme Industries vs. Network18 Media Investments |
| Hisar Metal vs. NMDC Limited | Hisar Metal vs. Embassy Office Parks | Hisar Metal vs. Gujarat Narmada Valley | Hisar Metal vs. Gujarat Alkalies and |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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