Correlation Between Agro Tech and Bosch
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By analyzing existing cross correlation between Agro Tech Foods and Bosch Limited, you can compare the effects of market volatilities on Agro Tech 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 Agro Tech with a short position of Bosch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Tech and Bosch.
Diversification Opportunities for Agro Tech and Bosch
Modest diversification
The 3 months correlation between Agro and Bosch is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Agro Tech Foods and Bosch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Limited and Agro Tech 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 Agro Tech Foods 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 Agro Tech i.e., Agro Tech and Bosch go up and down completely randomly.
Pair Corralation between Agro Tech and Bosch
Assuming the 90 days trading horizon Agro Tech is expected to generate 2.7 times less return on investment than Bosch. In addition to that, Agro Tech is 1.83 times more volatile than Bosch Limited. It trades about 0.02 of its total potential returns per unit of risk. Bosch Limited is currently generating about 0.11 per unit of volatility. If you would invest 1,693,216 in Bosch Limited on September 3, 2024 and sell it today you would earn a total of 1,803,404 from holding Bosch Limited or generate 106.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agro Tech Foods vs. Bosch Limited
Performance |
| Timeline |
| Agro Tech Foods |
| Bosch Limited |
Agro Tech and Bosch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Tech and Bosch
The main advantage of trading using opposite Agro Tech and Bosch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Tech 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.| Agro Tech vs. Tata Consultancy Services | Agro Tech vs. Quess Corp Limited | Agro Tech vs. Reliance Industries Limited | Agro Tech vs. Infosys Limited |
| Bosch vs. NRB Industrial Bearings | Bosch vs. Rajnandini Metal Limited | Bosch vs. Manaksia Coated Metals | Bosch vs. Lakshmi Finance Industrial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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