Correlation Between V2 Retail and Refex Industries
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By analyzing existing cross correlation between V2 Retail Limited and Refex Industries Limited, you can compare the effects of market volatilities on V2 Retail 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 V2 Retail with a short position of Refex Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2 Retail and Refex Industries.
Diversification Opportunities for V2 Retail and Refex Industries
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between V2RETAIL and Refex is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding V2 Retail Limited and Refex Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refex Industries 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 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 V2 Retail i.e., V2 Retail and Refex Industries go up and down completely randomly.
Pair Corralation between V2 Retail and Refex Industries
Assuming the 90 days trading horizon V2 Retail Limited is expected to generate 1.24 times more return on investment than Refex Industries. However, V2 Retail is 1.24 times more volatile than Refex Industries Limited. It trades about 0.45 of its potential returns per unit of risk. Refex Industries Limited is currently generating about -0.19 per unit of risk. If you would invest 138,300 in V2 Retail Limited on October 11, 2024 and sell it today you would earn a total of 36,935 from holding V2 Retail Limited or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V2 Retail Limited vs. Refex Industries Limited
Performance |
| Timeline |
| V2 Retail Limited |
| Refex Industries |
V2 Retail and Refex Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V2 Retail and Refex Industries
The main advantage of trading using opposite V2 Retail and Refex Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2 Retail 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.| V2 Retail vs. Shyam Telecom Limited | V2 Retail vs. Aarti Drugs Limited | V2 Retail vs. Kavveri Telecom Products | V2 Retail vs. Zydus Wellness Limited |
| Refex Industries vs. Praxis Home Retail | Refex Industries vs. Gujarat Lease Financing | Refex Industries vs. Baazar Style Retail | Refex Industries vs. V2 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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