Correlation Between V2 Retail and MIC Electronics
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By analyzing existing cross correlation between V2 Retail Limited and MIC Electronics Limited, you can compare the effects of market volatilities on V2 Retail and MIC Electronics 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 V2 Retail with a short position of MIC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2 Retail and MIC Electronics.
Diversification Opportunities for V2 Retail and MIC Electronics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between V2RETAIL and MIC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding V2 Retail Limited and MIC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIC Electronics and V2 Retail 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 V2 Retail Limited are associated (or correlated) with MIC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIC Electronics has no effect on the direction of V2 Retail i.e., V2 Retail and MIC Electronics go up and down completely randomly.
Pair Corralation between V2 Retail and MIC Electronics
Assuming the 90 days trading horizon V2 Retail Limited is expected to generate 0.89 times more return on investment than MIC Electronics. However, V2 Retail Limited is 1.12 times less risky than MIC Electronics. It trades about 0.21 of its potential returns per unit of risk. MIC Electronics Limited is currently generating about 0.11 per unit of risk. If you would invest 8,900 in V2 Retail Limited on November 29, 2024 and sell it today you would earn a total of 165,705 from holding V2 Retail Limited or generate 1861.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.87% |
| Values | Daily Returns |
V2 Retail Limited vs. MIC Electronics Limited
Performance |
| Timeline |
| V2 Retail Limited |
| MIC Electronics |
V2 Retail and MIC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V2 Retail and MIC Electronics
The main advantage of trading using opposite V2 Retail and MIC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2 Retail position performs unexpectedly, MIC Electronics 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 MIC Electronics will offset losses from the drop in MIC Electronics' long position.| V2 Retail vs. AUTHUM INVESTMENT INFRASTRUCTU | V2 Retail vs. Welspun Investments and | V2 Retail vs. Cholamandalam Investment and | V2 Retail vs. Global Health Limited |
| MIC Electronics vs. The Indian Hotels | MIC Electronics vs. Fertilizers and Chemicals | MIC Electronics vs. 21st Century Management | MIC Electronics vs. Chalet Hotels 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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