Correlation Between Usha Martin and Industrial Investment

Can any of the company-specific risk be diversified away by investing in both Usha Martin and Industrial 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 Usha Martin and Industrial Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Usha Martin Education and Industrial Investment Trust, you can compare the effects of market volatilities on Usha Martin and Industrial 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 Usha Martin with a short position of Industrial Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usha Martin and Industrial Investment.

Diversification Opportunities for Usha Martin and Industrial Investment

-0.29

Correlation Coefficient

Usha Martin  Industrial Investment

Very good diversification

The 3 months correlation between Usha and Industrial is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Usha Martin Education and Industrial Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Investment and Usha Martin 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 Usha Martin Education are associated (or correlated) with Industrial Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Investment has no effect on the direction of Usha Martin i.e., Usha Martin and Industrial Investment go up and down completely randomly.

Pair Corralation between Usha Martin and Industrial Investment

Assuming the 90 days trading horizon Usha Martin Education is expected to generate 1.21 times more return on investment than Industrial Investment. However, Usha Martin is 1.21 times more volatile than Industrial Investment Trust. It trades about 0.04 of its potential returns per unit of risk. Industrial Investment Trust is currently generating about -0.06 per unit of risk. If you would invest  558.00  in Usha Martin Education on May 7, 2025 and sell it today you would earn a total of  27.00  from holding Usha Martin Education or generate 4.84% return on investment over 90 days.

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

Usha Martin Education  vs.  Industrial Investment Trust

Usha Martin Education

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Usha Martin Education are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Usha Martin may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Industrial Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Industrial Investment Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Usha Martin and Industrial Investment

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

The idea behind Usha Martin Education and Industrial Investment Trust 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.