 धूल आपी थी डूरिलेशिन room चेशाह ड़ावाद आपर्रिलेशिया दीझांगे तेचा तो दू्री पनगढा वोन वोने और आदर आदरis कोरिलेशनिस के 2 अटम्स का अपस में लिंकिज क्या है वाट वल बी दे मुवमें इंपाक्त अव वान अन दे अदर यानी के अगर एक चीज चेंज होगी तो दूसरे पे कितना इंपाक्त ताएगा या दोनो का अपस में लिंकिज क्या है, ताएगे बी गेज तो दूसरे प्यागा तो आव भी नहीं के करन्सी की और हमारे जो स्तोक्स हैं, जो मारी अनवेस्मेंट है उसके रिलेशिन जो वो बने 3 केटेगरीज में प्लोटेन की है थी स्तोक कोड़ीलेशिन, नेगडीव कोड़ीलेशिन and अप्कदडीव कोड़ीलेशिन जब भाम ये कोड़ीलेशिन की जो भाई अब दिल् Israel भी ची कस, तो तो तो स्विक जार, वर्त, परिक चार, परड़ाद्र गी। that there is zero correlation in short, this talk currency fluctuation no impact no impact other factors impact but specifically only currency change no impact on talk now this correlation is up to a certain degree now minor change some changes will not come but if a lot of heat will come drastically then maybe this zero correlation relationship does not stay but generally it means that currency fluctuation no impact on our stock so that means this particular stock you need to worry less about the currency movement an example of zero correlation is if the stock price of American electronic device producer apple apple is an international product everyone is buying throughout the countries and their sales are so strong their demand is so strong so we have seen while the US dollar change by even 1% in that apple's performance no impact on apple's stock because their brand loyalty is so strong their customer base is so strong that they are not having that much impact this is an example of a zero correlation negative correlation a negative correlation is when a stock price increase as local currency depreciates your local currency depreciates so your stock price is likely to increase so it is a negative correlation where fall is coming here you are getting benefit out of it so this is one phenomena an example of negative correlation if price of German pharmaceutical maker's buyer rises with depreciation of euro because euro depreciates but the price of stock that's going up positive correlation positive correlation exists when a stock price decrease while the local currency depreciates local currency is also depreciating and your stock value is also decreasing normally this phenomenon is more positive correlation but let's do an example of this an example of positive correlation is if the stock price of Toyota were to decrease with the depreciation of yen yen is depreciating and Toyota's stock price will also decrease now the important point that these relationships are not fixed when I say fixed these are being seen these are being washed out but they are not any rules or thumb correlation can help investors conduct a more comprehensive valuation of an investment suppose investor forecast that euro will decline versus basket of currencies you estimate that this will have an impact so you can gauge the impact on your portfolio as well weakness in your road will be beneficial if bear has a negative correlation we already talked about if that correlation is negative then it is beneficial so we should be able to by knowing this relationship we can gauge the impact we can carry out in this what I was saying earlier is that one thing is empirical evidence empirical evidence is what it is not a law it is not a theory it is finding seen from many many cases we have not seen many cases we have compiled what was the result so theoretically we took that model took factors sampled out but again point is it is not a rule that it should be like this but historically it is seen historically it is compiled from the observation so important to realize those correlations are purely empirical and the relationship between stock price and currency in relation to this it is based on empirical evidence and net impact of currency can be more complicated actually in the next future what impact will come it can be different and with this we will have to build in other factors bottom line the relationship between asset return and exchange rate movement is critical in international asset pricing specifically now global investing is taking place international firms multi-nationals are working so this impact is very critical which point will appreciate that the linkages of currency is very important overall currency impact depends on the currency structure of exports imports and financing what kind of financing you have taken how much is your export component and overall its basket impact it may be necessary to conduct a more thorough analysis of companies with diverse international operations where international operations will come you have to specifically watch how much percent from which currency we are impacting how much percent is our expo here where is our production where is our sale where is the currency we have to conduct this involves assessing the operational activity and financing of company in each country where they do business where is the financing where is the funding where is the impact so by understanding the impact on individual companies and assets and the correlation that currency fluctuation will have on us investors are better able to evaluate the currency expo here on their portfolio when we will understand that how much is our link how much is our correlation so we will design our entire portfolio to evaluate it we will take a lot of steps that is the impact of currency we will be able to gauge it thank you