Correlation Between Sasken Technologies and Nippon Life
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By analyzing existing cross correlation between Sasken Technologies Limited and Nippon Life India, you can compare the effects of market volatilities on Sasken Technologies and Nippon Life 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 Sasken Technologies with a short position of Nippon Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sasken Technologies and Nippon Life.
Diversification Opportunities for Sasken Technologies and Nippon Life
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sasken and Nippon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sasken Technologies Limited and Nippon Life India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Life India and Sasken 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 Sasken Technologies Limited are associated (or correlated) with Nippon Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Life India has no effect on the direction of Sasken Technologies i.e., Sasken Technologies and Nippon Life go up and down completely randomly.
Pair Corralation between Sasken Technologies and Nippon Life
Assuming the 90 days trading horizon Sasken Technologies is expected to generate 1.27 times less return on investment than Nippon Life. In addition to that, Sasken Technologies is 1.15 times more volatile than Nippon Life India. It trades about 0.08 of its total potential returns per unit of risk. Nippon Life India is currently generating about 0.12 per unit of volatility. If you would invest 23,437 in Nippon Life India on September 14, 2024 and sell it today you would earn a total of 54,283 from holding Nippon Life India or generate 231.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Sasken Technologies Limited vs. Nippon Life India
Performance |
Timeline |
Sasken Technologies |
Nippon Life India |
Sasken Technologies and Nippon Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sasken Technologies and Nippon Life
The main advantage of trading using opposite Sasken Technologies and Nippon Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sasken Technologies position performs unexpectedly, Nippon Life 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 Nippon Life will offset losses from the drop in Nippon Life's long position.Sasken Technologies vs. Vodafone Idea Limited | Sasken Technologies vs. Yes Bank Limited | Sasken Technologies vs. Indian Overseas Bank | Sasken Technologies vs. Indian Oil |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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