Correlation Between Shyam Metalics and Radiant Cash

Can any of the company-specific risk be diversified away by investing in both Shyam Metalics and Radiant Cash 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 Radiant Cash 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 Radiant Cash Management, you can compare the effects of market volatilities on Shyam Metalics and Radiant Cash 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 Radiant Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyam Metalics and Radiant Cash.

Diversification Opportunities for Shyam Metalics and Radiant Cash

-0.4

Correlation Coefficient

Shyam Metalics  Radiant Cash

Very good diversification

The 3 months correlation between Shyam and Radiant is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shyam Metalics and and Radiant Cash Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Cash Management 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 Radiant Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Cash Management has no effect on the direction of Shyam Metalics i.e., Shyam Metalics and Radiant Cash go up and down completely randomly.

Pair Corralation between Shyam Metalics and Radiant Cash

Assuming the 90 days trading horizon Shyam Metalics and is expected to generate 1.3 times more return on investment than Radiant Cash. However, Shyam Metalics is 1.3 times more volatile than Radiant Cash Management. It trades about 0.13 of its potential returns per unit of risk. Radiant Cash Management is currently generating about -0.32 per unit of risk. If you would invest  71,519  in Shyam Metalics and on December 28, 2024 and sell it today you would earn a total of  13,811  from holding Shyam Metalics and or generate 19.31% 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.  Radiant Cash Management

Shyam Metalics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shyam Metalics and are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Shyam Metalics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Radiant Cash Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Radiant Cash Management 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 fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Shyam Metalics and Radiant Cash

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

The idea behind Shyam Metalics and and Radiant Cash Management 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.