Correlation Between Radaan Mediaworks and Ankit Metal

Can any of the company-specific risk be diversified away by investing in both Radaan Mediaworks and Ankit Metal 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 Radaan Mediaworks and Ankit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Radaan Mediaworks India and Ankit Metal Power, you can compare the effects of market volatilities on Radaan Mediaworks and Ankit Metal 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 Radaan Mediaworks with a short position of Ankit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radaan Mediaworks and Ankit Metal.

Diversification Opportunities for Radaan Mediaworks and Ankit Metal

0.84

Correlation Coefficient

Radaan Mediaworks  Ankit Metal

Very poor diversification

The 3 months correlation between Radaan and Ankit is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Radaan Mediaworks India and Ankit Metal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankit Metal Power and Radaan Mediaworks 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 Radaan Mediaworks India are associated (or correlated) with Ankit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankit Metal Power has no effect on the direction of Radaan Mediaworks i.e., Radaan Mediaworks and Ankit Metal go up and down completely randomly.

Pair Corralation between Radaan Mediaworks and Ankit Metal

Assuming the 90 days trading horizon Radaan Mediaworks India is expected to generate 1.06 times more return on investment than Ankit Metal. However, Radaan Mediaworks is 1.06 times more volatile than Ankit Metal Power. It trades about 0.08 of its potential returns per unit of risk. Ankit Metal Power is currently generating about -0.04 per unit of risk. If you would invest  185.00  in Radaan Mediaworks India on December 1, 2024 and sell it today you would earn a total of  204.00  from holding Radaan Mediaworks India or generate 110.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	88.73%
Values	Daily Returns

Radaan Mediaworks India  vs.  Ankit Metal Power

Radaan Mediaworks India

Risk-Adjusted Performance

Very Weak

Over the last 90 days Radaan Mediaworks India has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ankit Metal Power

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Radaan Mediaworks and Ankit Metal

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

The idea behind Radaan Mediaworks India and Ankit Metal Power 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.