Correlation Between MRF and UTI Asset
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By analyzing existing cross correlation between MRF Limited and UTI Asset Management, you can compare the effects of market volatilities on MRF and UTI Asset 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 MRF with a short position of UTI Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and UTI Asset.
Diversification Opportunities for MRF and UTI Asset
Very poor diversification
The 3 months correlation between MRF and UTI is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and UTI Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Asset Management and MRF 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 MRF Limited are associated (or correlated) with UTI Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Asset Management has no effect on the direction of MRF i.e., MRF and UTI Asset go up and down completely randomly.
Pair Corralation between MRF and UTI Asset
Assuming the 90 days trading horizon MRF Limited is expected to generate 0.36 times more return on investment than UTI Asset. However, MRF Limited is 2.8 times less risky than UTI Asset. It trades about -0.43 of its potential returns per unit of risk. UTI Asset Management is currently generating about -0.19 per unit of risk. If you would invest 11,363,300 in MRF Limited on December 2, 2024 and sell it today you would lose (825,900) from holding MRF Limited or give up 7.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
MRF Limited vs. UTI Asset Management
Performance |
Timeline |
MRF Limited |
UTI Asset Management |
MRF and UTI Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MRF and UTI Asset
The main advantage of trading using opposite MRF and UTI Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, UTI Asset 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 UTI Asset will offset losses from the drop in UTI Asset's long position.MRF vs. Speciality Restaurants Limited | MRF vs. Rama Steel Tubes | MRF vs. Aarti Drugs Limited | MRF vs. Mangalam Drugs And |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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