Correlation Between VA Tech and Sasken Technologies
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By analyzing existing cross correlation between VA Tech Wabag and Sasken Technologies Limited, you can compare the effects of market volatilities on VA Tech and Sasken Technologies 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 VA Tech with a short position of Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of VA Tech and Sasken Technologies.
Diversification Opportunities for VA Tech and Sasken Technologies
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WABAG and Sasken is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding VA Tech Wabag and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies and VA Tech 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 VA Tech Wabag are associated (or correlated) with Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of VA Tech i.e., VA Tech and Sasken Technologies go up and down completely randomly.
Pair Corralation between VA Tech and Sasken Technologies
Assuming the 90 days trading horizon VA Tech Wabag is expected to generate 1.1 times more return on investment than Sasken Technologies. However, VA Tech is 1.1 times more volatile than Sasken Technologies Limited. It trades about 0.13 of its potential returns per unit of risk. Sasken Technologies Limited is currently generating about 0.08 per unit of risk. If you would invest 33,160 in VA Tech Wabag on September 22, 2024 and sell it today you would earn a total of 128,980 from holding VA Tech Wabag or generate 388.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.59% |
Values | Daily Returns |
VA Tech Wabag vs. Sasken Technologies Limited
Performance |
Timeline |
VA Tech Wabag |
Sasken Technologies |
VA Tech and Sasken Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VA Tech and Sasken Technologies
The main advantage of trading using opposite VA Tech and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VA Tech position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.VA Tech vs. Reliance Industries Limited | VA Tech vs. State Bank of | VA Tech vs. Oil Natural Gas | VA Tech vs. ICICI Bank 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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