Correlation Between Bajaj Holdings and Spencers Retail
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By analyzing existing cross correlation between Bajaj Holdings Investment and Spencers Retail Limited, you can compare the effects of market volatilities on Bajaj Holdings and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Spencers Retail.
Diversification Opportunities for Bajaj Holdings and Spencers Retail
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bajaj and Spencers is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Spencers Retail go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Spencers Retail
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 0.53 times more return on investment than Spencers Retail. However, Bajaj Holdings Investment is 1.9 times less risky than Spencers Retail. It trades about 0.11 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.01 per unit of risk. If you would invest 811,484 in Bajaj Holdings Investment on September 3, 2024 and sell it today you would earn a total of 235,341 from holding Bajaj Holdings Investment or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Spencers Retail Limited
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Spencers Retail |
Bajaj Holdings and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Spencers Retail
The main advantage of trading using opposite Bajaj Holdings and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| Bajaj Holdings vs. The Investment Trust | Bajaj Holdings vs. Hathway Cable Datacom | Bajaj Holdings vs. Kalyani Investment | Bajaj Holdings vs. Industrial Investment Trust |
| Spencers Retail vs. Bajaj Holdings Investment | Spencers Retail vs. Shipping | Spencers Retail vs. Indo Borax Chemicals | Spencers Retail vs. Kingfa Science Technology |
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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