Correlation Between Texmaco Infrastructure and Steelcast
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By analyzing existing cross correlation between Texmaco Infrastructure Holdings and Steelcast Limited, you can compare the effects of market volatilities on Texmaco Infrastructure and Steelcast 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 Texmaco Infrastructure with a short position of Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Texmaco Infrastructure and Steelcast.
Diversification Opportunities for Texmaco Infrastructure and Steelcast
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Texmaco and Steelcast is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Texmaco Infrastructure Holding and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast Limited and Texmaco Infrastructure 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 Texmaco Infrastructure Holdings are associated (or correlated) with Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of Texmaco Infrastructure i.e., Texmaco Infrastructure and Steelcast go up and down completely randomly.
Pair Corralation between Texmaco Infrastructure and Steelcast
Assuming the 90 days trading horizon Texmaco Infrastructure Holdings is expected to generate 1.56 times more return on investment than Steelcast. However, Texmaco Infrastructure is 1.56 times more volatile than Steelcast Limited. It trades about 0.06 of its potential returns per unit of risk. Steelcast Limited is currently generating about 0.06 per unit of risk. If you would invest 5,353 in Texmaco Infrastructure Holdings on November 28, 2024 and sell it today you would earn a total of 5,906 from holding Texmaco Infrastructure Holdings or generate 110.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Texmaco Infrastructure Holding vs. Steelcast Limited
Performance |
| Timeline |
| Texmaco Infrastructure |
| Steelcast Limited |
Texmaco Infrastructure and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Texmaco Infrastructure and Steelcast
The main advantage of trading using opposite Texmaco Infrastructure and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Texmaco Infrastructure position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.The idea behind Texmaco Infrastructure Holdings and Steelcast Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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