Correlation Between Popular Vehicles and POWERGRID Infrastructure

Can any of the company-specific risk be diversified away by investing in both Popular Vehicles and POWERGRID Infrastructure 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 Popular Vehicles and POWERGRID Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Popular Vehicles and and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on Popular Vehicles and POWERGRID Infrastructure 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 Popular Vehicles with a short position of POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Popular Vehicles and POWERGRID Infrastructure.

Diversification Opportunities for Popular Vehicles and POWERGRID Infrastructure

0.87

Correlation Coefficient

Popular Vehicles  POWERGRID Infrastructure

Very poor diversification

The 3 months correlation between Popular and POWERGRID is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Popular Vehicles and and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure and Popular Vehicles 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 Popular Vehicles and are associated (or correlated) with POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Popular Vehicles i.e., Popular Vehicles and POWERGRID Infrastructure go up and down completely randomly.

Pair Corralation between Popular Vehicles and POWERGRID Infrastructure

Assuming the 90 days trading horizon Popular Vehicles and is expected to generate 2.49 times more return on investment than POWERGRID Infrastructure. However, Popular Vehicles is 2.49 times more volatile than POWERGRID Infrastructure Investment. It trades about 0.18 of its potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about 0.24 per unit of risk. If you would invest  10,066  in Popular Vehicles and on April 24, 2025 and sell it today you would earn a total of  3,096  from holding Popular Vehicles and or generate 30.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Popular Vehicles and  vs.  POWERGRID Infrastructure Inves

Popular Vehicles

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Popular Vehicles and are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Popular Vehicles unveiled solid returns over the last few months and may actually be approaching a breakup point.

POWERGRID Infrastructure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in POWERGRID Infrastructure Investment are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, POWERGRID Infrastructure unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Popular Vehicles and POWERGRID Infrastructure

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

The idea behind Popular Vehicles and and POWERGRID Infrastructure Investment 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.