Correlation Between NIFTY SUMER and Praj Industries
Specify exactly 2 symbols:
By analyzing existing cross correlation between NIFTY SUMER DURABLES and Praj Industries Limited, you can compare the effects of market volatilities on NIFTY SUMER and Praj Industries 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 NIFTY SUMER with a short position of Praj Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY SUMER and Praj Industries.
Diversification Opportunities for NIFTY SUMER and Praj Industries
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIFTY and Praj is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY SUMER DURABLES and Praj Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praj Industries and NIFTY SUMER 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 NIFTY SUMER DURABLES are associated (or correlated) with Praj Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praj Industries has no effect on the direction of NIFTY SUMER i.e., NIFTY SUMER and Praj Industries go up and down completely randomly.
Pair Corralation between NIFTY SUMER and Praj Industries
Assuming the 90 days trading horizon NIFTY SUMER DURABLES is expected to generate 0.57 times more return on investment than Praj Industries. However, NIFTY SUMER DURABLES is 1.76 times less risky than Praj Industries. It trades about 0.15 of its potential returns per unit of risk. Praj Industries Limited is currently generating about 0.05 per unit of risk. If you would invest 4,017,735 in NIFTY SUMER DURABLES on September 24, 2024 and sell it today you would earn a total of 112,730 from holding NIFTY SUMER DURABLES or generate 2.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NIFTY SUMER DURABLES vs. Praj Industries Limited
Performance |
Timeline |
NIFTY SUMER and Praj Industries Volatility Contrast
Predicted Return Density |
Returns |
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Praj Industries Limited
Pair trading matchups for Praj Industries
Pair Trading with NIFTY SUMER and Praj Industries
The main advantage of trading using opposite NIFTY SUMER and Praj Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY SUMER position performs unexpectedly, Praj Industries 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 Praj Industries will offset losses from the drop in Praj Industries' long position.NIFTY SUMER vs. Mangalore Chemicals Fertilizers | NIFTY SUMER vs. DMCC SPECIALITY CHEMICALS | NIFTY SUMER vs. Oriental Carbon Chemicals | NIFTY SUMER vs. Hindcon Chemicals Limited |
Praj Industries vs. MRF Limited | Praj Industries vs. JSW Holdings Limited | Praj Industries vs. Maharashtra Scooters Limited | Praj Industries vs. Nalwa Sons Investments |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |