Correlation Between V2 Retail and Shriram Finance
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By analyzing existing cross correlation between V2 Retail Limited and Shriram Finance Limited, you can compare the effects of market volatilities on V2 Retail and Shriram 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 V2 Retail with a short position of Shriram Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2 Retail and Shriram Finance.
Diversification Opportunities for V2 Retail and Shriram Finance
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between V2RETAIL and Shriram is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding V2 Retail Limited and Shriram Finance Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shriram Finance 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 Shriram Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shriram Finance has no effect on the direction of V2 Retail i.e., V2 Retail and Shriram Finance go up and down completely randomly.
Pair Corralation between V2 Retail and Shriram Finance
Assuming the 90 days trading horizon V2 Retail Limited is expected to generate 1.43 times more return on investment than Shriram Finance. However, V2 Retail is 1.43 times more volatile than Shriram Finance Limited. It trades about 0.24 of its potential returns per unit of risk. Shriram Finance Limited is currently generating about 0.1 per unit of risk. If you would invest 25,640 in V2 Retail Limited on September 14, 2024 and sell it today you would earn a total of 113,630 from holding V2 Retail Limited or generate 443.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
V2 Retail Limited vs. Shriram Finance Limited
Performance |
| Timeline |
| V2 Retail Limited |
| Shriram Finance |
V2 Retail and Shriram Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V2 Retail and Shriram Finance
The main advantage of trading using opposite V2 Retail and Shriram Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2 Retail position performs unexpectedly, Shriram 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 Shriram Finance will offset losses from the drop in Shriram Finance's long position.| V2 Retail vs. UCO Bank | V2 Retail vs. Karur Vysya Bank | V2 Retail vs. Max Financial Services | V2 Retail vs. City Union Bank |
| Shriram Finance vs. Sarveshwar Foods Limited | Shriram Finance vs. Tamilnadu Telecommunication Limited | Shriram Finance vs. Megastar Foods Limited | Shriram Finance vs. Compucom Software 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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