Correlation Between Hindware Home and Star Health

Can any of the company-specific risk be diversified away by investing in both Hindware Home and Star Health 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 Hindware Home and Star Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hindware Home Innovation and Star Health and, you can compare the effects of market volatilities on Hindware Home and Star Health 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 Hindware Home with a short position of Star Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hindware Home and Star Health.

Diversification Opportunities for Hindware Home and Star Health

0.64

Correlation Coefficient

Hindware Home  Star Health

Poor diversification

The 3 months correlation between Hindware and Star is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hindware Home Innovation and Star Health and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Health and Hindware Home 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 Hindware Home Innovation are associated (or correlated) with Star Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Health has no effect on the direction of Hindware Home i.e., Hindware Home and Star Health go up and down completely randomly.

Pair Corralation between Hindware Home and Star Health

Assuming the 90 days trading horizon Hindware Home Innovation is expected to generate 1.17 times more return on investment than Star Health. However, Hindware Home is 1.17 times more volatile than Star Health and. It trades about 0.2 of its potential returns per unit of risk. Star Health and is currently generating about 0.09 per unit of risk. If you would invest  19,986  in Hindware Home Innovation on April 24, 2025 and sell it today you would earn a total of  6,444  from holding Hindware Home Innovation or generate 32.24% return on investment over 90 days.

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

Hindware Home Innovation  vs.  Star Health and

Hindware Home Innovation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hindware Home Innovation are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Hindware Home reported solid returns over the last few months and may actually be approaching a breakup point.

Star Health

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Star Health and are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain essential indicators, Star Health may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hindware Home and Star Health

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

The idea behind Hindware Home Innovation and Star Health and 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.