Correlation Between Niraj Ispat and Page Industries

Can any of the company-specific risk be diversified away by investing in both Niraj Ispat and Page Industries 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 Niraj Ispat and Page Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Niraj Ispat Industries and Page Industries Limited, you can compare the effects of market volatilities on Niraj Ispat and Page Industries 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 Niraj Ispat with a short position of Page Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niraj Ispat and Page Industries.

Diversification Opportunities for Niraj Ispat and Page Industries

0.75

Correlation Coefficient

Niraj Ispat  Page Industries

Poor diversification

The 3 months correlation between Niraj and Page is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Niraj Ispat Industries and Page Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Page Industries and Niraj Ispat 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 Niraj Ispat Industries are associated (or correlated) with Page Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Page Industries has no effect on the direction of Niraj Ispat i.e., Niraj Ispat and Page Industries go up and down completely randomly.

Pair Corralation between Niraj Ispat and Page Industries

If you would invest  21,442  in Niraj Ispat Industries on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Niraj Ispat Industries or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Niraj Ispat Industries  vs.  Page Industries Limited

Niraj Ispat Industries

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Niraj Ispat Industries are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Niraj Ispat unveiled solid returns over the last few months and may actually be approaching a breakup point.

Page Industries

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Page Industries Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, Page Industries may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Niraj Ispat and Page Industries

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

The idea behind Niraj Ispat Industries and Page Industries Limited 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.