Correlation Between Ankit Metal and Sintex Plastics

Can any of the company-specific risk be diversified away by investing in both Ankit Metal and Sintex Plastics 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 Ankit Metal and Sintex Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ankit Metal Power and Sintex Plastics Technology, you can compare the effects of market volatilities on Ankit Metal and Sintex Plastics 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 Ankit Metal with a short position of Sintex Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankit Metal and Sintex Plastics.

Diversification Opportunities for Ankit Metal and Sintex Plastics

0.0

Correlation Coefficient

Ankit Metal  Sintex Plastics

Pay attention - limited upside

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

Pair Corralation between Ankit Metal and Sintex Plastics

If you would invest  361.00  in Ankit Metal Power on September 17, 2024 and sell it today you would earn a total of  19.00  from holding Ankit Metal Power or generate 5.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Ankit Metal Power  vs.  Sintex Plastics Technology

Ankit Metal Power

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ankit Metal Power are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Ankit Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sintex Plastics Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ankit Metal and Sintex Plastics

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

The idea behind Ankit Metal Power and Sintex Plastics Technology 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..