Correlation Between Shemaroo Entertainment and Refex Industries

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

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

Diversification Opportunities for Shemaroo Entertainment and Refex Industries

0.0

Correlation Coefficient

Shemaroo Entertainment  Refex Industries

Pay attention - limited upside

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

Pair Corralation between Shemaroo Entertainment and Refex Industries

If you would invest  0.00  in Refex Industries Limited on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Refex Industries Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Shemaroo Entertainment Limited  vs.  Refex Industries Limited

Shemaroo Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

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

Refex Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Refex Industries Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Refex 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 Shemaroo Entertainment and Refex Industries

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

The idea behind Shemaroo Entertainment Limited and Refex 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.