Correlation Between Suzlon Energy and AU Small
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By analyzing existing cross correlation between Suzlon Energy Limited and AU Small Finance, you can compare the effects of market volatilities on Suzlon Energy and AU Small 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 Suzlon Energy with a short position of AU Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzlon Energy and AU Small.
Diversification Opportunities for Suzlon Energy and AU Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzlon and AUBANK is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Suzlon Energy Limited and AU Small Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Small Finance and Suzlon Energy 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 Suzlon Energy Limited are associated (or correlated) with AU Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Small Finance has no effect on the direction of Suzlon Energy i.e., Suzlon Energy and AU Small go up and down completely randomly.
Pair Corralation between Suzlon Energy and AU Small
Assuming the 90 days trading horizon Suzlon Energy Limited is expected to generate 2.47 times more return on investment than AU Small. However, Suzlon Energy is 2.47 times more volatile than AU Small Finance. It trades about -0.06 of its potential returns per unit of risk. AU Small Finance is currently generating about -0.15 per unit of risk. If you would invest 6,695 in Suzlon Energy Limited on September 1, 2024 and sell it today you would lose (397.00) from holding Suzlon Energy Limited or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Suzlon Energy Limited vs. AU Small Finance
Performance |
| Timeline |
| Suzlon Energy Limited |
| AU Small Finance |
Suzlon Energy and AU Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzlon Energy and AU Small
The main advantage of trading using opposite Suzlon Energy and AU Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzlon Energy position performs unexpectedly, AU Small 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 AU Small will offset losses from the drop in AU Small's long position.| Suzlon Energy vs. Thirumalai Chemicals Limited | Suzlon Energy vs. Neogen Chemicals Limited | Suzlon Energy vs. LLOYDS METALS AND | Suzlon Energy vs. Shyam Metalics and |
| AU Small vs. Nalwa Sons Investments | AU Small vs. Tata Investment | AU Small vs. BF Investment Limited | AU Small vs. Kalyani Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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