Correlation Between SECUREKLOUD TECHNOLOGIES and Ankit Metal

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

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

Diversification Opportunities for SECUREKLOUD TECHNOLOGIES and Ankit Metal

-0.69

Correlation Coefficient

SECUREKLOUD TECHNOLOGIES  Ankit Metal

Excellent diversification

The 3 months correlation between SECUREKLOUD and Ankit is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding SECUREKLOUD TECHNOLOGIES LIMIT 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 SECUREKLOUD 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 SECUREKLOUD TECHNOLOGIES LIMITED 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 SECUREKLOUD TECHNOLOGIES i.e., SECUREKLOUD TECHNOLOGIES and Ankit Metal go up and down completely randomly.

Pair Corralation between SECUREKLOUD TECHNOLOGIES and Ankit Metal

Assuming the 90 days trading horizon SECUREKLOUD TECHNOLOGIES LIMITED is expected to generate 1.2 times more return on investment than Ankit Metal. However, SECUREKLOUD TECHNOLOGIES is 1.2 times more volatile than Ankit Metal Power. It trades about 0.0 of its potential returns per unit of risk. Ankit Metal Power is currently generating about -0.01 per unit of risk. If you would invest  4,150  in SECUREKLOUD TECHNOLOGIES LIMITED on October 24, 2024 and sell it today you would lose (892.00) from holding SECUREKLOUD TECHNOLOGIES LIMITED or give up 21.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.29%
Values	Daily Returns

SECUREKLOUD TECHNOLOGIES LIMIT  vs.  Ankit Metal Power

SECUREKLOUD TECHNOLOGIES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SECUREKLOUD TECHNOLOGIES LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, SECUREKLOUD TECHNOLOGIES is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Ankit Metal Power

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ankit Metal Power are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Ankit Metal is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SECUREKLOUD TECHNOLOGIES and Ankit Metal

The main advantage of trading using opposite SECUREKLOUD TECHNOLOGIES and Ankit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECUREKLOUD TECHNOLOGIES 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 SECUREKLOUD TECHNOLOGIES LIMITED 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.