Correlation Between Bajaj Healthcare and Aster DM
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By analyzing existing cross correlation between Bajaj Healthcare Limited and Aster DM Healthcare, you can compare the effects of market volatilities on Bajaj Healthcare and Aster DM 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 Bajaj Healthcare with a short position of Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Healthcare and Aster DM.
Diversification Opportunities for Bajaj Healthcare and Aster DM
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bajaj and Aster is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Healthcare Limited and Aster DM Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aster DM Healthcare and Bajaj Healthcare 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 Bajaj Healthcare Limited are associated (or correlated) with Aster DM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aster DM Healthcare has no effect on the direction of Bajaj Healthcare i.e., Bajaj Healthcare and Aster DM go up and down completely randomly.
Pair Corralation between Bajaj Healthcare and Aster DM
Assuming the 90 days trading horizon Bajaj Healthcare Limited is expected to generate 2.47 times more return on investment than Aster DM. However, Bajaj Healthcare is 2.47 times more volatile than Aster DM Healthcare. It trades about 0.17 of its potential returns per unit of risk. Aster DM Healthcare is currently generating about -0.32 per unit of risk. If you would invest 53,000 in Bajaj Healthcare Limited on November 28, 2024 and sell it today you would earn a total of 9,930 from holding Bajaj Healthcare Limited or generate 18.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Healthcare Limited vs. Aster DM Healthcare
Performance |
| Timeline |
| Bajaj Healthcare |
| Aster DM Healthcare |
Bajaj Healthcare and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Healthcare and Aster DM
The main advantage of trading using opposite Bajaj Healthcare and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Healthcare position performs unexpectedly, Aster DM 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 Aster DM will offset losses from the drop in Aster DM's long position.| Bajaj Healthcare vs. Transport of | Bajaj Healthcare vs. Ratnamani Metals Tubes | Bajaj Healthcare vs. Manaksia Coated Metals | Bajaj Healthcare vs. Shyam Metalics and |
| Aster DM vs. Navneet Education Limited | Aster DM vs. Vertoz Advertising Limited | Aster DM vs. Tree House Education | Aster DM vs. Yatra Online Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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