Correlation Between Bajaj Holdings and Oracle Financial
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By analyzing existing cross correlation between Bajaj Holdings Investment and Oracle Financial Services, you can compare the effects of market volatilities on Bajaj Holdings and Oracle Financial 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 Oracle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Oracle Financial.
Diversification Opportunities for Bajaj Holdings and Oracle Financial
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bajaj and Oracle is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Oracle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle Financial Services 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 Oracle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle Financial Services has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Oracle Financial go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Oracle Financial
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 1.3 times more return on investment than Oracle Financial. However, Bajaj Holdings is 1.3 times more volatile than Oracle Financial Services. It trades about 0.07 of its potential returns per unit of risk. Oracle Financial Services is currently generating about -0.05 per unit of risk. If you would invest 1,020,300 in Bajaj Holdings Investment on October 26, 2024 and sell it today you would earn a total of 99,530 from holding Bajaj Holdings Investment or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Oracle Financial Services
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Oracle Financial Services |
Bajaj Holdings and Oracle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Oracle Financial
The main advantage of trading using opposite Bajaj Holdings and Oracle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Oracle Financial 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 Oracle Financial will offset losses from the drop in Oracle Financial's long position.| Bajaj Holdings vs. Jubilant Foodworks Limited | Bajaj Holdings vs. Mrs Bectors Food | Bajaj Holdings vs. Manaksia Coated Metals | Bajaj Holdings vs. Rajnandini Metal Limited |
| Oracle Financial vs. Jindal Poly Investment | Oracle Financial vs. Pilani Investment and | Oracle Financial vs. Bajaj Holdings Investment | Oracle Financial vs. UTI Asset Management |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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