Correlation Between Man Infraconstructio and Pritish Nandy

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

By analyzing existing cross correlation between Man Infraconstruction Limited and Pritish Nandy Communications, you can compare the effects of market volatilities on Man Infraconstructio and Pritish Nandy 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 Man Infraconstructio with a short position of Pritish Nandy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and Pritish Nandy.

Diversification Opportunities for Man Infraconstructio and Pritish Nandy

-0.28

Correlation Coefficient

Man Infraconstructio  Pritish Nandy

Very good diversification

The 3 months correlation between Man and Pritish is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and Pritish Nandy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pritish Nandy Commun and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with Pritish Nandy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pritish Nandy Commun has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and Pritish Nandy go up and down completely randomly.

Pair Corralation between Man Infraconstructio and Pritish Nandy

Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to generate 0.8 times more return on investment than Pritish Nandy. However, Man Infraconstruction Limited is 1.25 times less risky than Pritish Nandy. It trades about -0.05 of its potential returns per unit of risk. Pritish Nandy Communications is currently generating about -0.35 per unit of risk. If you would invest  23,294  in Man Infraconstruction Limited on October 24, 2024 and sell it today you would lose (839.00) from holding Man Infraconstruction Limited or give up 3.6% of portfolio value over 90 days.

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

Man Infraconstruction Limited  vs.  Pritish Nandy Communications

Man Infraconstruction

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Man Infraconstruction Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Man Infraconstructio reported solid returns over the last few months and may actually be approaching a breakup point.

Pritish Nandy Commun

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pritish Nandy Communications 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 rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Man Infraconstructio and Pritish Nandy

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

The idea behind Man Infraconstruction Limited and Pritish Nandy Communications 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.