Correlation Between Ankit Metal and Mask Investments

Can any of the company-specific risk be diversified away by investing in both Ankit Metal and Mask Investments 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 Mask Investments 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 Mask Investments Limited, you can compare the effects of market volatilities on Ankit Metal and Mask Investments 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 Mask Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankit Metal and Mask Investments.

Diversification Opportunities for Ankit Metal and Mask Investments

0.37

Correlation Coefficient

Ankit Metal  Mask Investments

Weak diversification

The 3 months correlation between Ankit and Mask is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ankit Metal Power and Mask Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mask Investments 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 Mask Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mask Investments has no effect on the direction of Ankit Metal i.e., Ankit Metal and Mask Investments go up and down completely randomly.

Pair Corralation between Ankit Metal and Mask Investments

Assuming the 90 days trading horizon Ankit Metal is expected to generate 2.39 times less return on investment than Mask Investments. But when comparing it to its historical volatility, Ankit Metal Power is 1.1 times less risky than Mask Investments. It trades about 0.02 of its potential returns per unit of risk. Mask Investments Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  15,660  in Mask Investments Limited on April 24, 2025 and sell it today you would earn a total of  540.00  from holding Mask Investments Limited or generate 3.45% return on investment over 90 days.

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

Ankit Metal Power  vs.  Mask Investments Limited

Ankit Metal Power

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ankit Metal Power are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Ankit Metal is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Mask Investments

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mask Investments Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Mask Investments may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ankit Metal and Mask Investments

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

The idea behind Ankit Metal Power and Mask Investments 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.