Correlation Between Bajaj Holdings and Sterling
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By analyzing existing cross correlation between Bajaj Holdings Investment and Sterling and Wilson, you can compare the effects of market volatilities on Bajaj Holdings and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Sterling.
Diversification Opportunities for Bajaj Holdings and Sterling
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bajaj and Sterling is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Sterling go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Sterling
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 0.57 times more return on investment than Sterling. However, Bajaj Holdings Investment is 1.74 times less risky than Sterling. It trades about 0.2 of its potential returns per unit of risk. Sterling and Wilson is currently generating about -0.32 per unit of risk. If you would invest 1,107,180 in Bajaj Holdings Investment on November 6, 2024 and sell it today you would earn a total of 113,320 from holding Bajaj Holdings Investment or generate 10.24% 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. Sterling and Wilson
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Sterling and Wilson |
Bajaj Holdings and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Sterling
The main advantage of trading using opposite Bajaj Holdings and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| Bajaj Holdings vs. MRF Limited | Bajaj Holdings vs. The Orissa Minerals | Bajaj Holdings vs. Honeywell Automation India | Bajaj Holdings vs. Page Industries Limited |
| Sterling vs. Dev Information Technology | Sterling vs. IOL Chemicals and | Sterling vs. Chambal Fertilizers Chemicals | Sterling vs. Mangalore Chemicals Fertilizers |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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