Correlation Between STEEL EXCHANGE and Digjam
Specify exactly 2 symbols:
By analyzing existing cross correlation between STEEL EXCHANGE INDIA and Digjam Limited, you can compare the effects of market volatilities on STEEL EXCHANGE and Digjam 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 STEEL EXCHANGE with a short position of Digjam. Check out your portfolio center. Please also check ongoing floating volatility patterns of STEEL EXCHANGE and Digjam.
Diversification Opportunities for STEEL EXCHANGE and Digjam
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STEEL and Digjam is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding STEEL EXCHANGE INDIA and Digjam Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digjam Limited and STEEL EXCHANGE 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 STEEL EXCHANGE INDIA are associated (or correlated) with Digjam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digjam Limited has no effect on the direction of STEEL EXCHANGE i.e., STEEL EXCHANGE and Digjam go up and down completely randomly.
Pair Corralation between STEEL EXCHANGE and Digjam
Assuming the 90 days trading horizon STEEL EXCHANGE INDIA is expected to generate 0.32 times more return on investment than Digjam. However, STEEL EXCHANGE INDIA is 3.1 times less risky than Digjam. It trades about 0.1 of its potential returns per unit of risk. Digjam Limited is currently generating about -0.23 per unit of risk. If you would invest 1,045 in STEEL EXCHANGE INDIA on September 24, 2024 and sell it today you would earn a total of 23.00 from holding STEEL EXCHANGE INDIA or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
STEEL EXCHANGE INDIA vs. Digjam Limited
Performance |
Timeline |
STEEL EXCHANGE INDIA |
Digjam Limited |
STEEL EXCHANGE and Digjam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with STEEL EXCHANGE and Digjam
The main advantage of trading using opposite STEEL EXCHANGE and Digjam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEEL EXCHANGE position performs unexpectedly, Digjam 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 Digjam will offset losses from the drop in Digjam's long position.STEEL EXCHANGE vs. ILFS Investment Managers | STEEL EXCHANGE vs. Viceroy Hotels Limited | STEEL EXCHANGE vs. Industrial Investment Trust | STEEL EXCHANGE vs. Network18 Media Investments |
Digjam vs. Syrma SGS Technology | Digjam vs. Rama Steel Tubes | Digjam vs. STEEL EXCHANGE INDIA | Digjam vs. Cambridge Technology Enterprises |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |