Correlation Between Speciality Restaurants and Agarwal Industrial
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By analyzing existing cross correlation between Speciality Restaurants Limited and Agarwal Industrial, you can compare the effects of market volatilities on Speciality Restaurants and Agarwal Industrial 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 Speciality Restaurants with a short position of Agarwal Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speciality Restaurants and Agarwal Industrial.
Diversification Opportunities for Speciality Restaurants and Agarwal Industrial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Speciality and Agarwal is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Speciality Restaurants Limited and Agarwal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agarwal Industrial and Speciality Restaurants 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 Speciality Restaurants Limited are associated (or correlated) with Agarwal Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agarwal Industrial has no effect on the direction of Speciality Restaurants i.e., Speciality Restaurants and Agarwal Industrial go up and down completely randomly.
Pair Corralation between Speciality Restaurants and Agarwal Industrial
Assuming the 90 days trading horizon Speciality Restaurants Limited is expected to under-perform the Agarwal Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Speciality Restaurants Limited is 1.22 times less risky than Agarwal Industrial. The stock trades about -0.04 of its potential returns per unit of risk. The Agarwal Industrial is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 59,212 in Agarwal Industrial on September 26, 2024 and sell it today you would earn a total of 70,433 from holding Agarwal Industrial or generate 118.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Speciality Restaurants Limited vs. Agarwal Industrial
Performance |
Timeline |
Speciality Restaurants |
Agarwal Industrial |
Speciality Restaurants and Agarwal Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Speciality Restaurants and Agarwal Industrial
The main advantage of trading using opposite Speciality Restaurants and Agarwal Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speciality Restaurants position performs unexpectedly, Agarwal Industrial 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 Agarwal Industrial will offset losses from the drop in Agarwal Industrial's long position.Speciality Restaurants vs. Kingfa Science Technology | Speciality Restaurants vs. Rico Auto Industries | Speciality Restaurants vs. GACM Technologies Limited | Speciality Restaurants vs. COSMO FIRST LIMITED |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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