Correlation Between Investment Trust and Refex Industries
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By analyzing existing cross correlation between The Investment Trust and Refex Industries Limited, you can compare the effects of market volatilities on Investment Trust and Refex Industries 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 Refex Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and Refex Industries.
Diversification Opportunities for Investment Trust and Refex Industries
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investment and Refex is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and Refex Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refex Industries 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 Refex Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Refex Industries has no effect on the direction of Investment Trust i.e., Investment Trust and Refex Industries go up and down completely randomly.
Pair Corralation between Investment Trust and Refex Industries
Assuming the 90 days trading horizon The Investment Trust is expected to under-perform the Refex Industries. But the stock apears to be less risky and, when comparing its historical volatility, The Investment Trust is 1.14 times less risky than Refex Industries. The stock trades about -0.21 of its potential returns per unit of risk. The Refex Industries Limited is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 46,565 in Refex Industries Limited on November 7, 2024 and sell it today you would lose (1,145) from holding Refex Industries Limited or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
The Investment Trust vs. Refex Industries Limited
Performance |
| Timeline |
| Investment Trust |
| Refex Industries |
Investment Trust and Refex Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and Refex Industries
The main advantage of trading using opposite Investment Trust and Refex Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, Refex Industries 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 Refex Industries will offset losses from the drop in Refex Industries' long position.| Investment Trust vs. Reliance Industries Limited | Investment Trust vs. Oil Natural Gas | Investment Trust vs. ICICI Bank Limited | Investment Trust vs. Bharti Airtel Limited |
| Refex Industries vs. IOL Chemicals and | Refex Industries vs. AUTHUM INVESTMENT INFRASTRUCTU | Refex Industries vs. Kalyani Investment | Refex Industries vs. SIL Investments 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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