Correlation Between Mazagon Dock and Agarwal Industrial
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By analyzing existing cross correlation between Mazagon Dock Shipbuilders and Agarwal Industrial, you can compare the effects of market volatilities on Mazagon Dock and Agarwal Industrial 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 Mazagon Dock with a short position of Agarwal Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mazagon Dock and Agarwal Industrial.
Diversification Opportunities for Mazagon Dock and Agarwal Industrial
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mazagon and Agarwal is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mazagon Dock Shipbuilders and Agarwal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agarwal Industrial and Mazagon Dock 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 Mazagon Dock Shipbuilders are associated (or correlated) with Agarwal Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agarwal Industrial has no effect on the direction of Mazagon Dock i.e., Mazagon Dock and Agarwal Industrial go up and down completely randomly.
Pair Corralation between Mazagon Dock and Agarwal Industrial
Assuming the 90 days trading horizon Mazagon Dock Shipbuilders is expected to generate 1.2 times more return on investment than Agarwal Industrial. However, Mazagon Dock is 1.2 times more volatile than Agarwal Industrial. It trades about 0.06 of its potential returns per unit of risk. Agarwal Industrial is currently generating about -0.1 per unit of risk. If you would invest 236,488 in Mazagon Dock Shipbuilders on December 26, 2024 and sell it today you would earn a total of 24,962 from holding Mazagon Dock Shipbuilders or generate 10.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mazagon Dock Shipbuilders vs. Agarwal Industrial
Performance |
Timeline |
Mazagon Dock Shipbuilders |
Agarwal Industrial |
Mazagon Dock and Agarwal Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mazagon Dock and Agarwal Industrial
The main advantage of trading using opposite Mazagon Dock and Agarwal Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mazagon Dock position performs unexpectedly, Agarwal Industrial 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 Agarwal Industrial will offset losses from the drop in Agarwal Industrial's long position.Mazagon Dock vs. Bikaji Foods International | Mazagon Dock vs. GM Breweries Limited | Mazagon Dock vs. Sapphire Foods India | Mazagon Dock vs. FCS Software Solutions |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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