Correlation Between Suzlon Energy and Swelect Energy
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By analyzing existing cross correlation between Suzlon Energy Limited and Swelect Energy Systems, you can compare the effects of market volatilities on Suzlon Energy and Swelect Energy 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 Swelect Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzlon Energy and Swelect Energy.
Diversification Opportunities for Suzlon Energy and Swelect Energy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzlon and Swelect is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Suzlon Energy Limited and Swelect Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swelect Energy Systems 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 Swelect Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swelect Energy Systems has no effect on the direction of Suzlon Energy i.e., Suzlon Energy and Swelect Energy go up and down completely randomly.
Pair Corralation between Suzlon Energy and Swelect Energy
Assuming the 90 days trading horizon Suzlon Energy Limited is expected to generate 0.87 times more return on investment than Swelect Energy. However, Suzlon Energy Limited is 1.16 times less risky than Swelect Energy. It trades about -0.05 of its potential returns per unit of risk. Swelect Energy Systems is currently generating about -0.16 per unit of risk. If you would invest 5,885 in Suzlon Energy Limited on November 6, 2024 and sell it today you would lose (248.00) from holding Suzlon Energy Limited or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Suzlon Energy Limited vs. Swelect Energy Systems
Performance |
| Timeline |
| Suzlon Energy Limited |
| Swelect Energy Systems |
Suzlon Energy and Swelect Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzlon Energy and Swelect Energy
The main advantage of trading using opposite Suzlon Energy and Swelect Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzlon Energy position performs unexpectedly, Swelect Energy 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 Swelect Energy will offset losses from the drop in Swelect Energy's long position.| Suzlon Energy vs. The Byke Hospitality | Suzlon Energy vs. MEDI ASSIST HEALTHCARE | Suzlon Energy vs. Rossari Biotech Limited | Suzlon Energy vs. Nazara Technologies Limited |
| Swelect Energy vs. Cantabil Retail India | Swelect Energy vs. Cartrade Tech Limited | Swelect Energy vs. Sandhar Technologies Limited | Swelect Energy vs. Rossari Biotech Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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