Correlation Between Bajaj Holdings and Persistent Systems
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By analyzing existing cross correlation between Bajaj Holdings Investment and Persistent Systems Limited, you can compare the effects of market volatilities on Bajaj Holdings and Persistent Systems 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 Persistent Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Persistent Systems.
Diversification Opportunities for Bajaj Holdings and Persistent Systems
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bajaj and Persistent is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Persistent Systems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persistent Systems 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 Persistent Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persistent Systems has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Persistent Systems go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Persistent Systems
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 0.62 times more return on investment than Persistent Systems. However, Bajaj Holdings Investment is 1.61 times less risky than Persistent Systems. It trades about -0.04 of its potential returns per unit of risk. Persistent Systems Limited is currently generating about -0.06 per unit of risk. If you would invest 1,187,100 in Bajaj Holdings Investment on November 3, 2024 and sell it today you would lose (31,130) from holding Bajaj Holdings Investment or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Persistent Systems Limited
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Persistent Systems |
Bajaj Holdings and Persistent Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Persistent Systems
The main advantage of trading using opposite Bajaj Holdings and Persistent Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Persistent Systems 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 Persistent Systems will offset losses from the drop in Persistent Systems' long position.| Bajaj Holdings vs. Reliance Home Finance | Bajaj Holdings vs. Life Insurance | Bajaj Holdings vs. Tata Investment | Bajaj Holdings vs. SINCLAIRS HOTELS ORD |
| Persistent Systems vs. Indian Metals Ferro | Persistent Systems vs. Total Transport Systems | Persistent Systems vs. Asian Hotels Limited | Persistent Systems vs. Blue Coast Hotels |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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