Correlation Between MIRC Electronics and Megastar Foods
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By analyzing existing cross correlation between MIRC Electronics Limited and Megastar Foods Limited, you can compare the effects of market volatilities on MIRC Electronics and Megastar Foods 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 MIRC Electronics with a short position of Megastar Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRC Electronics and Megastar Foods.
Diversification Opportunities for MIRC Electronics and Megastar Foods
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRC and Megastar is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MIRC Electronics Limited and Megastar Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megastar Foods and MIRC Electronics 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 MIRC Electronics Limited are associated (or correlated) with Megastar Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megastar Foods has no effect on the direction of MIRC Electronics i.e., MIRC Electronics and Megastar Foods go up and down completely randomly.
Pair Corralation between MIRC Electronics and Megastar Foods
Assuming the 90 days trading horizon MIRC Electronics Limited is expected to under-perform the Megastar Foods. But the stock apears to be less risky and, when comparing its historical volatility, MIRC Electronics Limited is 1.3 times less risky than Megastar Foods. The stock trades about -0.06 of its potential returns per unit of risk. The Megastar Foods Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 22,937 in Megastar Foods Limited on September 2, 2025 and sell it today you would earn a total of 1,588 from holding Megastar Foods Limited or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIRC Electronics Limited vs. Megastar Foods Limited
Performance |
| Timeline |
| MIRC Electronics |
| Megastar Foods |
MIRC Electronics and Megastar Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRC Electronics and Megastar Foods
The main advantage of trading using opposite MIRC Electronics and Megastar Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRC Electronics position performs unexpectedly, Megastar Foods 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 Megastar Foods will offset losses from the drop in Megastar Foods' long position.| MIRC Electronics vs. Welspun Investments and | MIRC Electronics vs. V Mart Retail Limited | MIRC Electronics vs. Tube Investments of | MIRC Electronics vs. JHS Svendgaard Retail |
| Megastar Foods vs. Bigbloc Construction Limited | Megastar Foods vs. Akme Fintrade India | Megastar Foods vs. ESILVER | Megastar Foods vs. Action Construction Equipment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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