Correlation Between SRI TRANG and Winner Group

Can any of the company-specific risk be diversified away by investing in both SRI TRANG and Winner Group 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 SRI TRANG and Winner Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SRI TRANG GLOVES and Winner Group Enterprise, you can compare the effects of market volatilities on SRI TRANG and Winner Group 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 SRI TRANG with a short position of Winner Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SRI TRANG and Winner Group.

Diversification Opportunities for SRI TRANG and Winner Group

-0.34

Correlation Coefficient

SRI TRANG  Winner Group

Very good diversification

The 3 months correlation between SRI and Winner is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SRI TRANG GLOVES and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise and SRI TRANG 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 SRI TRANG GLOVES are associated (or correlated) with Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of SRI TRANG i.e., SRI TRANG and Winner Group go up and down completely randomly.

Pair Corralation between SRI TRANG and Winner Group

Assuming the 90 days trading horizon SRI TRANG GLOVES is expected to under-perform the Winner Group. In addition to that, SRI TRANG is 2.5 times more volatile than Winner Group Enterprise. It trades about -0.07 of its total potential returns per unit of risk. Winner Group Enterprise is currently generating about 0.15 per unit of volatility. If you would invest  187.00  in Winner Group Enterprise on April 25, 2025 and sell it today you would earn a total of  17.00  from holding Winner Group Enterprise or generate 9.09% return on investment over 90 days.

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

SRI TRANG GLOVES  vs.  Winner Group Enterprise

SRI TRANG GLOVES

Risk-Adjusted Performance

Very Weak

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

Winner Group Enterprise

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Winner Group Enterprise are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Winner Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SRI TRANG and Winner Group

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

The idea behind SRI TRANG GLOVES and Winner Group Enterprise 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.