Correlation Between Whirlpool and SIL Investments
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By analyzing existing cross correlation between Whirlpool of India and SIL Investments Limited, you can compare the effects of market volatilities on Whirlpool and SIL Investments 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 Whirlpool with a short position of SIL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and SIL Investments.
Diversification Opportunities for Whirlpool and SIL Investments
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Whirlpool and SIL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool of India and SIL Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIL Investments and Whirlpool 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 Whirlpool of India are associated (or correlated) with SIL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIL Investments has no effect on the direction of Whirlpool i.e., Whirlpool and SIL Investments go up and down completely randomly.
Pair Corralation between Whirlpool and SIL Investments
Assuming the 90 days trading horizon Whirlpool is expected to generate 1.52 times less return on investment than SIL Investments. But when comparing it to its historical volatility, Whirlpool of India is 1.77 times less risky than SIL Investments. It trades about 0.09 of its potential returns per unit of risk. SIL Investments Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 45,053 in SIL Investments Limited on September 12, 2024 and sell it today you would earn a total of 27,762 from holding SIL Investments Limited or generate 61.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Whirlpool of India vs. SIL Investments Limited
Performance |
| Timeline |
| Whirlpool of India |
| SIL Investments |
Whirlpool and SIL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whirlpool and SIL Investments
The main advantage of trading using opposite Whirlpool and SIL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool position performs unexpectedly, SIL Investments 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 SIL Investments will offset losses from the drop in SIL Investments' long position.| Whirlpool vs. SIL Investments Limited | Whirlpool vs. Bombay Burmah Trading | Whirlpool vs. DMCC SPECIALITY CHEMICALS | Whirlpool vs. UFO Moviez India |
| SIL Investments vs. Yes Bank Limited | SIL Investments vs. Indian Oil | SIL Investments vs. Indo Borax Chemicals | SIL Investments vs. Kingfa Science Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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