Correlation Between S P and ILFS Investment
Can any of the company-specific risk be diversified away by investing in both S P and ILFS Investment 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 S P and ILFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S P Apparels and ILFS Investment Managers, you can compare the effects of market volatilities on S P and ILFS Investment 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 S P with a short position of ILFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of S P and ILFS Investment.
Diversification Opportunities for S P and ILFS Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPAL and ILFS is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding S P Apparels and ILFS Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILFS Investment Managers and S P 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 S P Apparels are associated (or correlated) with ILFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILFS Investment Managers has no effect on the direction of S P i.e., S P and ILFS Investment go up and down completely randomly.
Pair Corralation between S P and ILFS Investment
Assuming the 90 days trading horizon S P Apparels is expected to generate 0.79 times more return on investment than ILFS Investment. However, S P Apparels is 1.27 times less risky than ILFS Investment. It trades about 0.07 of its potential returns per unit of risk. ILFS Investment Managers is currently generating about 0.05 per unit of risk. If you would invest 71,230 in S P Apparels on August 27, 2025 and sell it today you would earn a total of 6,000 from holding S P Apparels or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
S P Apparels vs. ILFS Investment Managers
Performance |
| Timeline |
| S P Apparels |
| ILFS Investment Managers |
S P and ILFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S P and ILFS Investment
The main advantage of trading using opposite S P and ILFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S P position performs unexpectedly, ILFS Investment 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 ILFS Investment will offset losses from the drop in ILFS Investment's long position.| S P vs. Foods Inns Limited | S P vs. Garuda Construction Engineering | S P vs. Jayant Agro Organics | S P vs. Coffee Day Enterprises |
| ILFS Investment vs. Hi Tech Pipes Limited | ILFS Investment vs. Cybertech Systems And | ILFS Investment vs. Gujarat Fluorochemicals Limited | ILFS Investment vs. Punjab Chemicals Crop |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |