Correlation Between IG Petrochemicals and Shradha Infraprojects
Specify exactly 2 symbols:
By analyzing existing cross correlation between IG Petrochemicals Limited and Shradha Infraprojects Limited, you can compare the effects of market volatilities on IG Petrochemicals and Shradha Infraprojects 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 IG Petrochemicals with a short position of Shradha Infraprojects. Check out your portfolio center. Please also check ongoing floating volatility patterns of IG Petrochemicals and Shradha Infraprojects.
Diversification Opportunities for IG Petrochemicals and Shradha Infraprojects
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between IGPL and Shradha is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding IG Petrochemicals Limited and Shradha Infraprojects Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shradha Infraprojects and IG Petrochemicals 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 IG Petrochemicals Limited are associated (or correlated) with Shradha Infraprojects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shradha Infraprojects has no effect on the direction of IG Petrochemicals i.e., IG Petrochemicals and Shradha Infraprojects go up and down completely randomly.
Pair Corralation between IG Petrochemicals and Shradha Infraprojects
Assuming the 90 days trading horizon IG Petrochemicals Limited is expected to under-perform the Shradha Infraprojects. But the stock apears to be less risky and, when comparing its historical volatility, IG Petrochemicals Limited is 46.47 times less risky than Shradha Infraprojects. The stock trades about -0.02 of its potential returns per unit of risk. The Shradha Infraprojects Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,911 in Shradha Infraprojects Limited on September 26, 2024 and sell it today you would earn a total of 3,006 from holding Shradha Infraprojects Limited or generate 50.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
IG Petrochemicals Limited vs. Shradha Infraprojects Limited
Performance |
Timeline |
IG Petrochemicals |
Shradha Infraprojects |
IG Petrochemicals and Shradha Infraprojects Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IG Petrochemicals and Shradha Infraprojects
The main advantage of trading using opposite IG Petrochemicals and Shradha Infraprojects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IG Petrochemicals position performs unexpectedly, Shradha Infraprojects 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 Shradha Infraprojects will offset losses from the drop in Shradha Infraprojects' long position.IG Petrochemicals vs. NMDC Limited | IG Petrochemicals vs. Steel Authority of | IG Petrochemicals vs. Embassy Office Parks | IG Petrochemicals vs. Gujarat Narmada Valley |
Shradha Infraprojects vs. Vodafone Idea Limited | Shradha Infraprojects vs. Yes Bank Limited | Shradha Infraprojects vs. Indian Overseas Bank | Shradha Infraprojects vs. Indian Oil |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |