Correlation Between Bajaj Holdings and HT Media
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By analyzing existing cross correlation between Bajaj Holdings Investment and HT Media Limited, you can compare the effects of market volatilities on Bajaj Holdings and HT Media 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 HT Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and HT Media.
Diversification Opportunities for Bajaj Holdings and HT Media
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bajaj and HTMEDIA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and HT Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HT Media Limited 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 HT Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HT Media Limited has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and HT Media go up and down completely randomly.
Pair Corralation between Bajaj Holdings and HT Media
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 1.08 times more return on investment than HT Media. However, Bajaj Holdings is 1.08 times more volatile than HT Media Limited. It trades about 0.13 of its potential returns per unit of risk. HT Media Limited is currently generating about -0.01 per unit of risk. If you would invest 1,122,185 in Bajaj Holdings Investment on November 27, 2024 and sell it today you would earn a total of 78,000 from holding Bajaj Holdings Investment or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. HT Media Limited
Performance |
| Timeline |
| Bajaj Holdings Investment |
| HT Media Limited |
Bajaj Holdings and HT Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and HT Media
The main advantage of trading using opposite Bajaj Holdings and HT Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, HT Media 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 HT Media will offset losses from the drop in HT Media's long position.| Bajaj Holdings vs. Sarthak Metals Limited | Bajaj Holdings vs. Hathway Cable Datacom | Bajaj Holdings vs. Bikaji Foods International | Bajaj Holdings vs. Univa Foods Limited |
| HT Media vs. Golden Tobacco Limited | HT Media vs. Varun Beverages Limited | HT Media vs. United Breweries Limited | HT Media vs. Som Distilleries Breweries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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