Correlation Between Indraprastha Medical and Ankit Metal

Can any of the company-specific risk be diversified away by investing in both Indraprastha Medical and Ankit Metal 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 Indraprastha Medical and Ankit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Indraprastha Medical and Ankit Metal Power, you can compare the effects of market volatilities on Indraprastha Medical and Ankit Metal 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 Indraprastha Medical with a short position of Ankit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indraprastha Medical and Ankit Metal.

Diversification Opportunities for Indraprastha Medical and Ankit Metal

-0.24

Correlation Coefficient

Indraprastha Medical  Ankit Metal

Very good diversification

The 3 months correlation between Indraprastha and Ankit is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Indraprastha Medical and Ankit Metal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankit Metal Power and Indraprastha Medical 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 Indraprastha Medical are associated (or correlated) with Ankit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankit Metal Power has no effect on the direction of Indraprastha Medical i.e., Indraprastha Medical and Ankit Metal go up and down completely randomly.

Pair Corralation between Indraprastha Medical and Ankit Metal

Assuming the 90 days trading horizon Indraprastha Medical is expected to generate 0.88 times more return on investment than Ankit Metal. However, Indraprastha Medical is 1.13 times less risky than Ankit Metal. It trades about 0.08 of its potential returns per unit of risk. Ankit Metal Power is currently generating about 0.02 per unit of risk. If you would invest  42,060  in Indraprastha Medical on April 24, 2025 and sell it today you would earn a total of  5,135  from holding Indraprastha Medical or generate 12.21% return on investment over 90 days.

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

Indraprastha Medical  vs.  Ankit Metal Power

Indraprastha Medical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Indraprastha Medical are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Indraprastha Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Indraprastha Medical and Ankit Metal

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

The idea behind Indraprastha Medical and Ankit Metal Power 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.