Correlation Between 3M India and Bosch
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By analyzing existing cross correlation between 3M India Limited and Bosch Limited, you can compare the effects of market volatilities on 3M India and Bosch 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 3M India with a short position of Bosch. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M India and Bosch.
Diversification Opportunities for 3M India and Bosch
Good diversification
The 3 months correlation between 3MINDIA and Bosch is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding 3M India Limited and Bosch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Limited and 3M India 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 3M India Limited are associated (or correlated) with Bosch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Limited has no effect on the direction of 3M India i.e., 3M India and Bosch go up and down completely randomly.
Pair Corralation between 3M India and Bosch
Assuming the 90 days trading horizon 3M India Limited is expected to under-perform the Bosch. In addition to that, 3M India is 1.22 times more volatile than Bosch Limited. It trades about -0.22 of its total potential returns per unit of risk. Bosch Limited is currently generating about -0.13 per unit of volatility. If you would invest 3,593,195 in Bosch Limited on August 26, 2024 and sell it today you would lose (161,440) from holding Bosch Limited or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
3M India Limited vs. Bosch Limited
Performance |
| Timeline |
| 3M India Limited |
| Bosch Limited |
3M India and Bosch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M India and Bosch
The main advantage of trading using opposite 3M India and Bosch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M India position performs unexpectedly, Bosch 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 Bosch will offset losses from the drop in Bosch's long position.| 3M India vs. Kingfa Science Technology | 3M India vs. Rico Auto Industries | 3M India vs. GACM Technologies Limited | 3M India vs. COSMO FIRST LIMITED |
| Bosch vs. Gangotri Textiles Limited | Bosch vs. Hemisphere Properties India | Bosch vs. Kingfa Science Technology | Bosch vs. Rico Auto Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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