Correlation Between India Globalization and Eloxx Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both India Globalization and Eloxx Pharmaceuticals 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 India Globalization and Eloxx Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between India Globalization Capital and Eloxx Pharmaceuticals, you can compare the effects of market volatilities on India Globalization and Eloxx Pharmaceuticals 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 India Globalization with a short position of Eloxx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Globalization and Eloxx Pharmaceuticals.

Diversification Opportunities for India Globalization and Eloxx Pharmaceuticals

-0.36

Correlation Coefficient

India Globalization  Eloxx Pharmaceuticals

Very good diversification

The 3 months correlation between India and Eloxx is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding India Globalization Capital and Eloxx Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eloxx Pharmaceuticals and India Globalization 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 India Globalization Capital are associated (or correlated) with Eloxx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eloxx Pharmaceuticals has no effect on the direction of India Globalization i.e., India Globalization and Eloxx Pharmaceuticals go up and down completely randomly.

Pair Corralation between India Globalization and Eloxx Pharmaceuticals

If you would invest  35.00  in India Globalization Capital on August 31, 2024 and sell it today you would earn a total of  2.00  from holding India Globalization Capital or generate 5.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

India Globalization Capital  vs.  Eloxx Pharmaceuticals

India Globalization

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in India Globalization Capital are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, India Globalization may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Eloxx Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eloxx Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Eloxx Pharmaceuticals is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with India Globalization and Eloxx Pharmaceuticals

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

The idea behind India Globalization Capital and Eloxx Pharmaceuticals 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.