Correlation Between Sintex Plastics and Silver Touch

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Can any of the company-specific risk be diversified away by investing in both Sintex Plastics and Silver Touch 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 Sintex Plastics and Silver Touch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sintex Plastics Technology and Silver Touch Technologies, you can compare the effects of market volatilities on Sintex Plastics and Silver Touch 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 Sintex Plastics with a short position of Silver Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sintex Plastics and Silver Touch.

Diversification Opportunities for Sintex Plastics and Silver Touch

SintexSilverDiversified AwaySintexSilverDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sintex and Silver is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sintex Plastics Technology and Silver Touch Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Touch Technologies and Sintex Plastics 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 Sintex Plastics Technology are associated (or correlated) with Silver Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Touch Technologies has no effect on the direction of Sintex Plastics i.e., Sintex Plastics and Silver Touch go up and down completely randomly.

Pair Corralation between Sintex Plastics and Silver Touch

If you would invest  106.00  in Sintex Plastics Technology on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Sintex Plastics Technology or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sintex Plastics Technology  vs.  Silver Touch Technologies

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -8-6-4-2024
JavaScript chart by amCharts 3.21.15SPTL SILVERTUC
       Timeline  
Sintex Plastics Tech 

Risk-Adjusted Performance

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Over the last 90 days Sintex Plastics Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sintex Plastics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.11.151.2
Silver Touch Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Silver Touch Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan660680700720740760

Sintex Plastics and Silver Touch Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.050.100.15
JavaScript chart by amCharts 3.21.15SPTL SILVERTUC
       Returns  

Pair Trading with Sintex Plastics and Silver Touch

The main advantage of trading using opposite Sintex Plastics and Silver Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sintex Plastics position performs unexpectedly, Silver Touch 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 Silver Touch will offset losses from the drop in Silver Touch's long position.
The idea behind Sintex Plastics Technology and Silver Touch Technologies 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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