Correlation Between Indraprastha Medical and PYRAMID TECHNOPLAST

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

By analyzing existing cross correlation between Indraprastha Medical and PYRAMID TECHNOPLAST ORD, you can compare the effects of market volatilities on Indraprastha Medical and PYRAMID TECHNOPLAST 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 PYRAMID TECHNOPLAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indraprastha Medical and PYRAMID TECHNOPLAST.

Diversification Opportunities for Indraprastha Medical and PYRAMID TECHNOPLAST

0.18

Correlation Coefficient

Indraprastha Medical  PYRAMID TECHNOPLAST

Average diversification

The 3 months correlation between Indraprastha and PYRAMID is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Indraprastha Medical and PYRAMID TECHNOPLAST ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PYRAMID TECHNOPLAST ORD 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 PYRAMID TECHNOPLAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PYRAMID TECHNOPLAST ORD has no effect on the direction of Indraprastha Medical i.e., Indraprastha Medical and PYRAMID TECHNOPLAST go up and down completely randomly.

Pair Corralation between Indraprastha Medical and PYRAMID TECHNOPLAST

Assuming the 90 days trading horizon Indraprastha Medical is expected to generate 1.6 times more return on investment than PYRAMID TECHNOPLAST. However, Indraprastha Medical is 1.6 times more volatile than PYRAMID TECHNOPLAST ORD. It trades about 0.13 of its potential returns per unit of risk. PYRAMID TECHNOPLAST ORD is currently generating about -0.06 per unit of risk. If you would invest  39,031  in Indraprastha Medical on June 22, 2025 and sell it today you would earn a total of  8,399  from holding Indraprastha Medical or generate 21.52% return on investment over 90 days.

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

Indraprastha Medical  vs.  PYRAMID TECHNOPLAST ORD

Indraprastha Medical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Indraprastha Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Indraprastha Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

PYRAMID TECHNOPLAST ORD

Risk-Adjusted Performance

Weakest

Over the last 90 days PYRAMID TECHNOPLAST ORD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, PYRAMID TECHNOPLAST is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Indraprastha Medical and PYRAMID TECHNOPLAST

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

The idea behind Indraprastha Medical and PYRAMID TECHNOPLAST ORD 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.