Correlation Between Bajaj Healthcare and Capacite Infraprojects
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By analyzing existing cross correlation between Bajaj Healthcare Limited and Capacite Infraprojects Limited, you can compare the effects of market volatilities on Bajaj Healthcare and Capacite Infraprojects 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 Capacite Infraprojects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Healthcare and Capacite Infraprojects.
Diversification Opportunities for Bajaj Healthcare and Capacite Infraprojects
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bajaj and Capacite is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Healthcare Limited and Capacite Infraprojects Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capacite Infraprojects 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 Capacite Infraprojects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capacite Infraprojects has no effect on the direction of Bajaj Healthcare i.e., Bajaj Healthcare and Capacite Infraprojects go up and down completely randomly.
Pair Corralation between Bajaj Healthcare and Capacite Infraprojects
Assuming the 90 days trading horizon Bajaj Healthcare Limited is expected to generate 1.39 times more return on investment than Capacite Infraprojects. However, Bajaj Healthcare is 1.39 times more volatile than Capacite Infraprojects Limited. It trades about 0.11 of its potential returns per unit of risk. Capacite Infraprojects Limited is currently generating about 0.11 per unit of risk. If you would invest 34,279 in Bajaj Healthcare Limited on September 22, 2024 and sell it today you would earn a total of 19,111 from holding Bajaj Healthcare Limited or generate 55.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bajaj Healthcare Limited vs. Capacite Infraprojects Limited
Performance |
| Timeline |
| Bajaj Healthcare |
| Capacite Infraprojects |
Bajaj Healthcare and Capacite Infraprojects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Healthcare and Capacite Infraprojects
The main advantage of trading using opposite Bajaj Healthcare and Capacite Infraprojects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Healthcare position performs unexpectedly, Capacite Infraprojects 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 Capacite Infraprojects will offset losses from the drop in Capacite Infraprojects' long position.| Bajaj Healthcare vs. Max Financial Services | Bajaj Healthcare vs. Hybrid Financial Services | Bajaj Healthcare vs. California Software | Bajaj Healthcare vs. Le Travenues Technology |
| Capacite Infraprojects vs. Reliance Industries Limited | Capacite Infraprojects vs. HDFC Bank Limited | Capacite Infraprojects vs. Tata Consultancy Services | Capacite Infraprojects vs. Bharti Airtel 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 Stocks Directory module to find actively traded stocks across global markets.
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