Correlation Between Investment Trust and Power Finance
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By analyzing existing cross correlation between The Investment Trust and Power Finance, you can compare the effects of market volatilities on Investment Trust and Power Finance 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 Investment Trust with a short position of Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and Power Finance.
Diversification Opportunities for Investment Trust and Power Finance
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Investment and Power is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Finance and Investment Trust 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 The Investment Trust are associated (or correlated) with Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of Investment Trust i.e., Investment Trust and Power Finance go up and down completely randomly.
Pair Corralation between Investment Trust and Power Finance
Assuming the 90 days trading horizon The Investment Trust is expected to under-perform the Power Finance. In addition to that, Investment Trust is 1.05 times more volatile than Power Finance. It trades about -0.14 of its total potential returns per unit of risk. Power Finance is currently generating about 0.0 per unit of volatility. If you would invest 38,635 in Power Finance on November 29, 2024 and sell it today you would lose (440.00) from holding Power Finance or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment Trust vs. Power Finance
Performance |
| Timeline |
| Investment Trust |
| Power Finance |
Investment Trust and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and Power Finance
The main advantage of trading using opposite Investment Trust and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, Power Finance 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 Power Finance will offset losses from the drop in Power Finance's long position.| Investment Trust vs. Hybrid Financial Services | Investment Trust vs. Cantabil Retail India | Investment Trust vs. Arman Financial Services | Investment Trust vs. CREDITACCESS GRAMEEN LIMITED |
| Power Finance vs. Uniinfo Telecom Services | Power Finance vs. Praxis Home Retail | Power Finance vs. Pritish Nandy Communications | Power Finance vs. Future Retail 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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