Correlation Between India Globalization and Oragenics

Can any of the company-specific risk be diversified away by investing in both India Globalization and Oragenics 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 India Globalization and Oragenics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between India Globalization Capital and Oragenics, you can compare the effects of market volatilities on India Globalization and Oragenics 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 India Globalization with a short position of Oragenics. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Globalization and Oragenics.

Diversification Opportunities for India Globalization and Oragenics

0.7

Correlation Coefficient

India Globalization  Oragenics

Poor diversification

The 3 months correlation between India and Oragenics is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding India Globalization Capital and Oragenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oragenics and India Globalization 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 India Globalization Capital are associated (or correlated) with Oragenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oragenics has no effect on the direction of India Globalization i.e., India Globalization and Oragenics go up and down completely randomly.

Pair Corralation between India Globalization and Oragenics

Considering the 90-day investment horizon India Globalization Capital is expected to generate 0.64 times more return on investment than Oragenics. However, India Globalization Capital is 1.57 times less risky than Oragenics. It trades about -0.06 of its potential returns per unit of risk. Oragenics is currently generating about -0.16 per unit of risk. If you would invest  35.00  in India Globalization Capital on December 29, 2024 and sell it today you would lose (6.00) from holding India Globalization Capital or give up 17.14% of portfolio value over 90 days.

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

India Globalization Capital  vs.  Oragenics

India Globalization

Risk-Adjusted Performance

Very Weak

Over the last 90 days India Globalization Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Oragenics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oragenics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with India Globalization and Oragenics

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

The idea behind India Globalization Capital and Oragenics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.