Correlation Between Pritish Nandy and Sportking India

Can any of the company-specific risk be diversified away by investing in both Pritish Nandy and Sportking India 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 Pritish Nandy and Sportking India into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pritish Nandy Communications and Sportking India Limited, you can compare the effects of market volatilities on Pritish Nandy and Sportking India 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 Pritish Nandy with a short position of Sportking India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pritish Nandy and Sportking India.

Diversification Opportunities for Pritish Nandy and Sportking India

0.36

Correlation Coefficient

Pritish Nandy  Sportking India

Weak diversification

The 3 months correlation between Pritish and Sportking is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pritish Nandy Communications and Sportking India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportking India and Pritish Nandy 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 Pritish Nandy Communications are associated (or correlated) with Sportking India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportking India has no effect on the direction of Pritish Nandy i.e., Pritish Nandy and Sportking India go up and down completely randomly.

Pair Corralation between Pritish Nandy and Sportking India

Assuming the 90 days trading horizon Pritish Nandy is expected to generate 72.63 times less return on investment than Sportking India. But when comparing it to its historical volatility, Pritish Nandy Communications is 25.83 times less risky than Sportking India. It trades about 0.03 of its potential returns per unit of risk. Sportking India Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  6,745  in Sportking India Limited on October 10, 2024 and sell it today you would earn a total of  3,489  from holding Sportking India Limited or generate 51.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pritish Nandy Communications  vs.  Sportking India Limited

Pritish Nandy Commun

Risk-Adjusted Performance

0 of 100

Very Weak

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

Sportking India

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sportking India Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Pritish Nandy and Sportking India

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

The idea behind Pritish Nandy Communications and Sportking India 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.