Correlation Between Bajaj Healthcare and Indian Railway
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By analyzing existing cross correlation between Bajaj Healthcare Limited and Indian Railway Finance, you can compare the effects of market volatilities on Bajaj Healthcare and Indian Railway 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 Indian Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Healthcare and Indian Railway.
Diversification Opportunities for Bajaj Healthcare and Indian Railway
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bajaj and Indian is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Healthcare Limited and Indian Railway Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Railway Finance 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 Indian Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Railway Finance has no effect on the direction of Bajaj Healthcare i.e., Bajaj Healthcare and Indian Railway go up and down completely randomly.
Pair Corralation between Bajaj Healthcare and Indian Railway
Assuming the 90 days trading horizon Bajaj Healthcare is expected to generate 18.66 times less return on investment than Indian Railway. But when comparing it to its historical volatility, Bajaj Healthcare Limited is 1.3 times less risky than Indian Railway. It trades about 0.01 of its potential returns per unit of risk. Indian Railway Finance is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,284 in Indian Railway Finance on September 3, 2024 and sell it today you would earn a total of 11,650 from holding Indian Railway Finance or generate 354.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Bajaj Healthcare Limited vs. Indian Railway Finance
Performance |
| Timeline |
| Bajaj Healthcare |
| Indian Railway Finance |
Bajaj Healthcare and Indian Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Healthcare and Indian Railway
The main advantage of trading using opposite Bajaj Healthcare and Indian Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Healthcare position performs unexpectedly, Indian Railway 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 Indian Railway will offset losses from the drop in Indian Railway's long position.| Bajaj Healthcare vs. Life Insurance | Bajaj Healthcare vs. Ortel Communications Limited | Bajaj Healthcare vs. Electronics Mart India | Bajaj Healthcare vs. Sonata Software Limited |
| Indian Railway vs. Hisar Metal Industries | Indian Railway vs. Bajaj Healthcare Limited | Indian Railway vs. Medplus Health Services | Indian Railway vs. Hilton Metal Forging |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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