Correlation Between Bajaj Holdings and CREDITACCESS GRAMEEN
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By analyzing existing cross correlation between Bajaj Holdings Investment and CREDITACCESS GRAMEEN LIMITED, you can compare the effects of market volatilities on Bajaj Holdings and CREDITACCESS GRAMEEN 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 Holdings with a short position of CREDITACCESS GRAMEEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and CREDITACCESS GRAMEEN.
Diversification Opportunities for Bajaj Holdings and CREDITACCESS GRAMEEN
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bajaj and CREDITACCESS is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and CREDITACCESS GRAMEEN LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDITACCESS GRAMEEN and Bajaj Holdings 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 Holdings Investment are associated (or correlated) with CREDITACCESS GRAMEEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDITACCESS GRAMEEN has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and CREDITACCESS GRAMEEN go up and down completely randomly.
Pair Corralation between Bajaj Holdings and CREDITACCESS GRAMEEN
Assuming the 90 days trading horizon Bajaj Holdings is expected to generate 4.27 times less return on investment than CREDITACCESS GRAMEEN. But when comparing it to its historical volatility, Bajaj Holdings Investment is 2.47 times less risky than CREDITACCESS GRAMEEN. It trades about 0.11 of its potential returns per unit of risk. CREDITACCESS GRAMEEN LIMITED is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 91,125 in CREDITACCESS GRAMEEN LIMITED on November 6, 2024 and sell it today you would earn a total of 17,160 from holding CREDITACCESS GRAMEEN LIMITED or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. CREDITACCESS GRAMEEN LIMITED
Performance |
| Timeline |
| Bajaj Holdings Investment |
| CREDITACCESS GRAMEEN |
Bajaj Holdings and CREDITACCESS GRAMEEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and CREDITACCESS GRAMEEN
The main advantage of trading using opposite Bajaj Holdings and CREDITACCESS GRAMEEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN will offset losses from the drop in CREDITACCESS GRAMEEN's long position.| Bajaj Holdings vs. MRF Limited | Bajaj Holdings vs. The Orissa Minerals | Bajaj Holdings vs. Honeywell Automation India | Bajaj Holdings vs. Page Industries Limited |
| CREDITACCESS GRAMEEN vs. Karur Vysya Bank | CREDITACCESS GRAMEEN vs. UCO Bank | CREDITACCESS GRAMEEN vs. Chambal Fertilizers Chemicals | CREDITACCESS GRAMEEN vs. Arman Financial Services |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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