Correlation Between Bharatiya Global and Ankit Metal

Can any of the company-specific risk be diversified away by investing in both Bharatiya Global and Ankit Metal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bharatiya Global and Ankit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bharatiya Global Infomedia and Ankit Metal Power, you can compare the effects of market volatilities on Bharatiya Global and Ankit Metal 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 Bharatiya Global with a short position of Ankit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bharatiya Global and Ankit Metal.

Diversification Opportunities for Bharatiya Global and Ankit Metal

0.41

Correlation Coefficient

Bharatiya Global  Ankit Metal

Very weak diversification

The 3 months correlation between Bharatiya and Ankit is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bharatiya Global Infomedia and Ankit Metal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankit Metal Power and Bharatiya Global 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 Bharatiya Global Infomedia are associated (or correlated) with Ankit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankit Metal Power has no effect on the direction of Bharatiya Global i.e., Bharatiya Global and Ankit Metal go up and down completely randomly.

Pair Corralation between Bharatiya Global and Ankit Metal

Assuming the 90 days trading horizon Bharatiya Global Infomedia is expected to generate 0.57 times more return on investment than Ankit Metal. However, Bharatiya Global Infomedia is 1.76 times less risky than Ankit Metal. It trades about 0.15 of its potential returns per unit of risk. Ankit Metal Power is currently generating about 0.06 per unit of risk. If you would invest  317.00  in Bharatiya Global Infomedia on September 21, 2024 and sell it today you would earn a total of  111.00  from holding Bharatiya Global Infomedia or generate 35.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bharatiya Global Infomedia  vs.  Ankit Metal Power

Bharatiya Global Inf

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bharatiya Global Infomedia are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, Bharatiya Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Ankit Metal Power

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ankit Metal Power are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ankit Metal exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bharatiya Global and Ankit Metal

The main advantage of trading using opposite Bharatiya Global and Ankit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bharatiya Global position performs unexpectedly, Ankit Metal 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 Ankit Metal will offset losses from the drop in Ankit Metal's long position.

The idea behind Bharatiya Global Infomedia and Ankit Metal Power pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.