Correlation Between NIFTY SUMER and Persistent Systems
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By analyzing existing cross correlation between NIFTY SUMER DURABLES and Persistent Systems Limited, you can compare the effects of market volatilities on NIFTY SUMER and Persistent Systems 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 NIFTY SUMER with a short position of Persistent Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY SUMER and Persistent Systems.
Diversification Opportunities for NIFTY SUMER and Persistent Systems
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NIFTY and Persistent is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY SUMER DURABLES and Persistent Systems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persistent Systems and NIFTY SUMER 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 NIFTY SUMER DURABLES are associated (or correlated) with Persistent Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persistent Systems has no effect on the direction of NIFTY SUMER i.e., NIFTY SUMER and Persistent Systems go up and down completely randomly.
Pair Corralation between NIFTY SUMER and Persistent Systems
Assuming the 90 days trading horizon NIFTY SUMER is expected to generate 1.56 times less return on investment than Persistent Systems. But when comparing it to its historical volatility, NIFTY SUMER DURABLES is 1.03 times less risky than Persistent Systems. It trades about 0.3 of its potential returns per unit of risk. Persistent Systems Limited is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 566,040 in Persistent Systems Limited on September 9, 2024 and sell it today you would earn a total of 51,385 from holding Persistent Systems Limited or generate 9.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NIFTY SUMER DURABLES vs. Persistent Systems Limited
Performance |
Timeline |
NIFTY SUMER and Persistent Systems Volatility Contrast
Predicted Return Density |
Returns |
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Persistent Systems Limited
Pair trading matchups for Persistent Systems
Pair Trading with NIFTY SUMER and Persistent Systems
The main advantage of trading using opposite NIFTY SUMER and Persistent Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY SUMER position performs unexpectedly, Persistent Systems 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 Persistent Systems will offset losses from the drop in Persistent Systems' long position.NIFTY SUMER vs. LLOYDS METALS AND | NIFTY SUMER vs. Rajnandini Metal Limited | NIFTY SUMER vs. Bigbloc Construction Limited | NIFTY SUMER vs. KNR Constructions Limited |
Persistent Systems vs. DMCC SPECIALITY CHEMICALS | Persistent Systems vs. Mangalore Chemicals Fertilizers | Persistent Systems vs. Tata Chemicals Limited | Persistent Systems vs. Chambal Fertilizers Chemicals |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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