Correlation Between Bajaj Holdings and Repco Home
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By analyzing existing cross correlation between Bajaj Holdings Investment and Repco Home Finance, you can compare the effects of market volatilities on Bajaj Holdings and Repco Home 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 Repco Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Repco Home.
Diversification Opportunities for Bajaj Holdings and Repco Home
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bajaj and Repco is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Repco Home Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repco Home Finance 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 Repco Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repco Home Finance has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Repco Home go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Repco Home
Assuming the 90 days trading horizon Bajaj Holdings is expected to generate 5.06 times less return on investment than Repco Home. But when comparing it to its historical volatility, Bajaj Holdings Investment is 1.82 times less risky than Repco Home. It trades about 0.04 of its potential returns per unit of risk. Repco Home Finance is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 47,835 in Repco Home Finance on August 31, 2024 and sell it today you would earn a total of 2,710 from holding Repco Home Finance or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Repco Home Finance
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Repco Home Finance |
Bajaj Holdings and Repco Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Repco Home
The main advantage of trading using opposite Bajaj Holdings and Repco Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Repco Home 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 Repco Home will offset losses from the drop in Repco Home's long position.| Bajaj Holdings vs. ICICI Securities Limited | Bajaj Holdings vs. Nippon Life India | Bajaj Holdings vs. Fortis Healthcare Limited | Bajaj Holdings vs. ICICI Lombard General |
| Repco Home vs. ICICI Securities Limited | Repco Home vs. Nippon Life India | Repco Home vs. Fortis Healthcare Limited | Repco Home vs. ICICI Lombard General |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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