Correlation Between Silgo Retail and Maithan Alloys
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By analyzing existing cross correlation between Silgo Retail Limited and Maithan Alloys Limited, you can compare the effects of market volatilities on Silgo Retail and Maithan Alloys 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 Silgo Retail with a short position of Maithan Alloys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgo Retail and Maithan Alloys.
Diversification Opportunities for Silgo Retail and Maithan Alloys
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silgo and Maithan is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Silgo Retail Limited and Maithan Alloys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maithan Alloys and Silgo Retail 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 Silgo Retail Limited are associated (or correlated) with Maithan Alloys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maithan Alloys has no effect on the direction of Silgo Retail i.e., Silgo Retail and Maithan Alloys go up and down completely randomly.
Pair Corralation between Silgo Retail and Maithan Alloys
Assuming the 90 days trading horizon Silgo Retail Limited is expected to under-perform the Maithan Alloys. In addition to that, Silgo Retail is 1.92 times more volatile than Maithan Alloys Limited. It trades about -0.05 of its total potential returns per unit of risk. Maithan Alloys Limited is currently generating about -0.02 per unit of volatility. If you would invest 118,560 in Maithan Alloys Limited on September 25, 2024 and sell it today you would lose (4,675) from holding Maithan Alloys Limited or give up 3.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Silgo Retail Limited vs. Maithan Alloys Limited
Performance |
Timeline |
Silgo Retail Limited |
Maithan Alloys |
Silgo Retail and Maithan Alloys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Silgo Retail and Maithan Alloys
The main advantage of trading using opposite Silgo Retail and Maithan Alloys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgo Retail position performs unexpectedly, Maithan Alloys 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 Maithan Alloys will offset losses from the drop in Maithan Alloys' long position.Silgo Retail vs. Kaushalya Infrastructure Development | Silgo Retail vs. Tarapur Transformers Limited | Silgo Retail vs. Kingfa Science Technology | Silgo Retail vs. Rico Auto Industries |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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