Correlation Between Par Drugs and Exide Industries

Can any of the company-specific risk be diversified away by investing in both Par Drugs and Exide Industries 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 Par Drugs and Exide Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Par Drugs And and Exide Industries Limited, you can compare the effects of market volatilities on Par Drugs and Exide 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 Par Drugs with a short position of Exide Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Par Drugs and Exide Industries.

Diversification Opportunities for Par Drugs and Exide Industries

0.0

Correlation Coefficient

Par Drugs  Exide Industries

Pay attention - limited upside

The 3 months correlation between Par and Exide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Par Drugs And and Exide Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exide Industries and Par Drugs 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 Par Drugs And are associated (or correlated) with Exide Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exide Industries has no effect on the direction of Par Drugs i.e., Par Drugs and Exide Industries go up and down completely randomly.

Pair Corralation between Par Drugs and Exide Industries

If you would invest (100.00) in Exide Industries Limited on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Exide Industries Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Par Drugs And  vs.  Exide Industries Limited

Par Drugs And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Par Drugs And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Exide Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exide Industries Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Exide Industries is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Par Drugs and Exide Industries

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

The idea behind Par Drugs And and Exide Industries Limited 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 CEOs Directory module to screen CEOs from public companies around the world.