Correlation Between Indian Card and HOMESFY SM

Can any of the company-specific risk be diversified away by investing in both Indian Card and HOMESFY SM 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 Indian Card and HOMESFY SM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Indian Card Clothing and HOMESFY SM, you can compare the effects of market volatilities on Indian Card and HOMESFY SM 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 Indian Card with a short position of HOMESFY SM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Card and HOMESFY SM.

Diversification Opportunities for Indian Card and HOMESFY SM

-0.18

Correlation Coefficient

Indian Card  HOMESFY SM

Good diversification

The 3 months correlation between Indian and HOMESFY is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Indian Card Clothing and HOMESFY SM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOMESFY SM and Indian Card 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 Indian Card Clothing are associated (or correlated) with HOMESFY SM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOMESFY SM has no effect on the direction of Indian Card i.e., Indian Card and HOMESFY SM go up and down completely randomly.

Pair Corralation between Indian Card and HOMESFY SM

Assuming the 90 days trading horizon Indian Card Clothing is expected to generate 1.29 times more return on investment than HOMESFY SM. However, Indian Card is 1.29 times more volatile than HOMESFY SM. It trades about 0.02 of its potential returns per unit of risk. HOMESFY SM is currently generating about -0.21 per unit of risk. If you would invest  30,543  in Indian Card Clothing on April 25, 2025 and sell it today you would earn a total of  522.00  from holding Indian Card Clothing or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	39.68%
Values	Daily Returns

Indian Card Clothing  vs.  HOMESFY SM

Indian Card Clothing

Risk-Adjusted Performance

Weak

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

HOMESFY SM

Risk-Adjusted Performance

Very Weak

Over the last 90 days HOMESFY SM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Indian Card and HOMESFY SM

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

The idea behind Indian Card Clothing and HOMESFY SM 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 Stocks Directory module to find actively traded stocks across global markets.