Correlation Between Suzlon Energy and Premier Polyfilm
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By analyzing existing cross correlation between Suzlon Energy Limited and Premier Polyfilm Limited, you can compare the effects of market volatilities on Suzlon Energy and Premier Polyfilm 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 Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzlon Energy and Premier Polyfilm.
Diversification Opportunities for Suzlon Energy and Premier Polyfilm
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzlon and Premier is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Suzlon Energy Limited and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm 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 Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of Suzlon Energy i.e., Suzlon Energy and Premier Polyfilm go up and down completely randomly.
Pair Corralation between Suzlon Energy and Premier Polyfilm
Assuming the 90 days trading horizon Suzlon Energy Limited is expected to generate 1.76 times more return on investment than Premier Polyfilm. However, Suzlon Energy is 1.76 times more volatile than Premier Polyfilm Limited. It trades about -0.17 of its potential returns per unit of risk. Premier Polyfilm Limited is currently generating about -0.79 per unit of risk. If you would invest 6,292 in Suzlon Energy Limited on November 2, 2024 and sell it today you would lose (752.00) from holding Suzlon Energy Limited or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Suzlon Energy Limited vs. Premier Polyfilm Limited
Performance |
| Timeline |
| Suzlon Energy Limited |
| Premier Polyfilm |
Suzlon Energy and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzlon Energy and Premier Polyfilm
The main advantage of trading using opposite Suzlon Energy and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzlon Energy position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| Suzlon Energy vs. Prakash Steelage Limited | Suzlon Energy vs. Manaksia Steels Limited | Suzlon Energy vs. JSW Steel Limited | Suzlon Energy vs. Zenith Steel Pipes |
| Premier Polyfilm vs. NMDC Limited | Premier Polyfilm vs. Steel Authority of | Premier Polyfilm vs. Embassy Office Parks | Premier Polyfilm vs. Jai Balaji 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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