Correlation Between Sahamit Machinery and Bhiraj Office

Can any of the company-specific risk be diversified away by investing in both Sahamit Machinery and Bhiraj Office 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 Sahamit Machinery and Bhiraj Office into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sahamit Machinery Public and Bhiraj Office Leasehold, you can compare the effects of market volatilities on Sahamit Machinery and Bhiraj Office 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 Sahamit Machinery with a short position of Bhiraj Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamit Machinery and Bhiraj Office.

Diversification Opportunities for Sahamit Machinery and Bhiraj Office

-0.57

Correlation Coefficient

Sahamit Machinery  Bhiraj Office

Excellent diversification

The 3 months correlation between Sahamit and Bhiraj is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sahamit Machinery Public and Bhiraj Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhiraj Office Leasehold and Sahamit Machinery 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 Sahamit Machinery Public are associated (or correlated) with Bhiraj Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhiraj Office Leasehold has no effect on the direction of Sahamit Machinery i.e., Sahamit Machinery and Bhiraj Office go up and down completely randomly.

Pair Corralation between Sahamit Machinery and Bhiraj Office

Assuming the 90 days trading horizon Sahamit Machinery Public is expected to under-perform the Bhiraj Office. But the stock apears to be less risky and, when comparing its historical volatility, Sahamit Machinery Public is 1.52 times less risky than Bhiraj Office. The stock trades about -0.17 of its potential returns per unit of risk. The Bhiraj Office Leasehold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  490.00  in Bhiraj Office Leasehold on October 12, 2024 and sell it today you would earn a total of  10.00  from holding Bhiraj Office Leasehold or generate 2.04% return on investment over 90 days.

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

Sahamit Machinery Public  vs.  Bhiraj Office Leasehold

Sahamit Machinery Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sahamit Machinery Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Bhiraj Office Leasehold

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Sahamit Machinery and Bhiraj Office

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

The idea behind Sahamit Machinery Public and Bhiraj Office Leasehold 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.