Correlation Between Nazara Technologies and ADF Foods
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By analyzing existing cross correlation between Nazara Technologies Limited and ADF Foods Limited, you can compare the effects of market volatilities on Nazara Technologies and ADF Foods 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 Nazara Technologies with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nazara Technologies and ADF Foods.
Diversification Opportunities for Nazara Technologies and ADF Foods
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nazara and ADF is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nazara Technologies Limited and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and Nazara Technologies 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 Nazara Technologies Limited are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of Nazara Technologies i.e., Nazara Technologies and ADF Foods go up and down completely randomly.
Pair Corralation between Nazara Technologies and ADF Foods
Assuming the 90 days trading horizon Nazara Technologies Limited is expected to generate 1.08 times more return on investment than ADF Foods. However, Nazara Technologies is 1.08 times more volatile than ADF Foods Limited. It trades about 0.03 of its potential returns per unit of risk. ADF Foods Limited is currently generating about -0.22 per unit of risk. If you would invest 99,580 in Nazara Technologies Limited on October 25, 2024 and sell it today you would earn a total of 1,065 from holding Nazara Technologies Limited or generate 1.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nazara Technologies Limited vs. ADF Foods Limited
Performance |
Timeline |
Nazara Technologies |
ADF Foods Limited |
Nazara Technologies and ADF Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nazara Technologies and ADF Foods
The main advantage of trading using opposite Nazara Technologies and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nazara Technologies position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.Nazara Technologies vs. Kohinoor Foods Limited | Nazara Technologies vs. Silgo Retail Limited | Nazara Technologies vs. Praxis Home Retail | Nazara Technologies vs. ADF Foods Limited |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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