Correlation Between Akme Fintrade and Golden Tobacco
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By analyzing existing cross correlation between Akme Fintrade India and Golden Tobacco Limited, you can compare the effects of market volatilities on Akme Fintrade and Golden Tobacco 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 Akme Fintrade with a short position of Golden Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akme Fintrade and Golden Tobacco.
Diversification Opportunities for Akme Fintrade and Golden Tobacco
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akme and Golden is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Akme Fintrade India and Golden Tobacco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Tobacco and Akme Fintrade 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 Akme Fintrade India are associated (or correlated) with Golden Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Tobacco has no effect on the direction of Akme Fintrade i.e., Akme Fintrade and Golden Tobacco go up and down completely randomly.
Pair Corralation between Akme Fintrade and Golden Tobacco
Assuming the 90 days trading horizon Akme Fintrade India is expected to generate 1.54 times more return on investment than Golden Tobacco. However, Akme Fintrade is 1.54 times more volatile than Golden Tobacco Limited. It trades about 0.19 of its potential returns per unit of risk. Golden Tobacco Limited is currently generating about 0.07 per unit of risk. If you would invest 8,072 in Akme Fintrade India on September 27, 2024 and sell it today you would earn a total of 1,352 from holding Akme Fintrade India or generate 16.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Akme Fintrade India vs. Golden Tobacco Limited
Performance |
Timeline |
Akme Fintrade India |
Golden Tobacco |
Akme Fintrade and Golden Tobacco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akme Fintrade and Golden Tobacco
The main advantage of trading using opposite Akme Fintrade and Golden Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akme Fintrade position performs unexpectedly, Golden Tobacco 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 Golden Tobacco will offset losses from the drop in Golden Tobacco's long position.Akme Fintrade vs. Bajaj Finance Limited | ||
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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