Correlation Between Hexa Tradex and Orissa Minerals

Can any of the company-specific risk be diversified away by investing in both Hexa Tradex and Orissa Minerals 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 Hexa Tradex and Orissa Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hexa Tradex Limited and The Orissa Minerals, you can compare the effects of market volatilities on Hexa Tradex and Orissa Minerals 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 Hexa Tradex with a short position of Orissa Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexa Tradex and Orissa Minerals.

Diversification Opportunities for Hexa Tradex and Orissa Minerals

0.67

Correlation Coefficient

Hexa Tradex  Orissa Minerals

Poor diversification

The 3 months correlation between Hexa and Orissa is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hexa Tradex Limited and The Orissa Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orissa Minerals and Hexa Tradex 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 Hexa Tradex Limited are associated (or correlated) with Orissa Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orissa Minerals has no effect on the direction of Hexa Tradex i.e., Hexa Tradex and Orissa Minerals go up and down completely randomly.

Pair Corralation between Hexa Tradex and Orissa Minerals

Assuming the 90 days trading horizon Hexa Tradex Limited is expected to under-perform the Orissa Minerals. But the stock apears to be less risky and, when comparing its historical volatility, Hexa Tradex Limited is 1.4 times less risky than Orissa Minerals. The stock trades about -0.08 of its potential returns per unit of risk. The The Orissa Minerals is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  537,610  in The Orissa Minerals on April 21, 2025 and sell it today you would lose (14,800) from holding The Orissa Minerals or give up 2.75% of portfolio value over 90 days.

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

Hexa Tradex Limited  vs.  The Orissa Minerals

Hexa Tradex Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hexa Tradex Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Orissa Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Orissa Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Orissa Minerals is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hexa Tradex and Orissa Minerals

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

The idea behind Hexa Tradex Limited and The Orissa Minerals 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 CEOs Directory module to screen CEOs from public companies around the world.