Correlation Between Embassy Office and Mold Tek
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By analyzing existing cross correlation between Embassy Office Parks and Mold Tek Packaging Limited, you can compare the effects of market volatilities on Embassy Office and Mold Tek 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 Embassy Office with a short position of Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Office and Mold Tek.
Diversification Opportunities for Embassy Office and Mold Tek
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Embassy and Mold is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Office Parks and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging and Embassy Office 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 Embassy Office Parks are associated (or correlated) with Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of Embassy Office i.e., Embassy Office and Mold Tek go up and down completely randomly.
Pair Corralation between Embassy Office and Mold Tek
Assuming the 90 days trading horizon Embassy Office Parks is expected to generate 0.68 times more return on investment than Mold Tek. However, Embassy Office Parks is 1.47 times less risky than Mold Tek. It trades about -0.08 of its potential returns per unit of risk. Mold Tek Packaging Limited is currently generating about -0.12 per unit of risk. If you would invest 39,175 in Embassy Office Parks on September 10, 2024 and sell it today you would lose (2,378) from holding Embassy Office Parks or give up 6.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Embassy Office Parks vs. Mold Tek Packaging Limited
Performance |
Timeline |
Embassy Office Parks |
Mold Tek Packaging |
Embassy Office and Mold Tek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Embassy Office and Mold Tek
The main advantage of trading using opposite Embassy Office and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Office position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek's long position.Embassy Office vs. Steel Authority of | Embassy Office vs. Gujarat Alkalies and | Embassy Office vs. Indian Metals Ferro | Embassy Office vs. JTL Industries |
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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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