Correlation Between Shyam Metalics and Bharatiya Global

Can any of the company-specific risk be diversified away by investing in both Shyam Metalics and Bharatiya Global 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 Shyam Metalics and Bharatiya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shyam Metalics and and Bharatiya Global Infomedia, you can compare the effects of market volatilities on Shyam Metalics and Bharatiya Global 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 Shyam Metalics with a short position of Bharatiya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyam Metalics and Bharatiya Global.

Diversification Opportunities for Shyam Metalics and Bharatiya Global

-0.48

Correlation Coefficient

Shyam Metalics  Bharatiya Global

Very good diversification

The 3 months correlation between Shyam and Bharatiya is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shyam Metalics and and Bharatiya Global Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bharatiya Global Inf and Shyam Metalics 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 Shyam Metalics and are associated (or correlated) with Bharatiya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bharatiya Global Inf has no effect on the direction of Shyam Metalics i.e., Shyam Metalics and Bharatiya Global go up and down completely randomly.

Pair Corralation between Shyam Metalics and Bharatiya Global

Assuming the 90 days trading horizon Shyam Metalics and is expected to under-perform the Bharatiya Global. In addition to that, Shyam Metalics is 1.05 times more volatile than Bharatiya Global Infomedia. It trades about -0.13 of its total potential returns per unit of risk. Bharatiya Global Infomedia is currently generating about 0.3 per unit of volatility. If you would invest  308.00  in Bharatiya Global Infomedia on September 21, 2024 and sell it today you would earn a total of  120.00  from holding Bharatiya Global Infomedia or generate 38.96% return on investment over 90 days.

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

Shyam Metalics and  vs.  Bharatiya Global Infomedia

Shyam Metalics

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bharatiya Global Inf

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bharatiya Global Infomedia are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, Bharatiya Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shyam Metalics and Bharatiya Global

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

The idea behind Shyam Metalics and and Bharatiya Global Infomedia 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.