Correlation Between Bandhan Bank and Garware Hi
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By analyzing existing cross correlation between Bandhan Bank Limited and Garware Hi Tech Films, you can compare the effects of market volatilities on Bandhan Bank and Garware Hi 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 Bandhan Bank with a short position of Garware Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bandhan Bank and Garware Hi.
Diversification Opportunities for Bandhan Bank and Garware Hi
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bandhan and Garware is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bandhan Bank Limited and Garware Hi Tech Films in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garware Hi Tech and Bandhan Bank 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 Bandhan Bank Limited are associated (or correlated) with Garware Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garware Hi Tech has no effect on the direction of Bandhan Bank i.e., Bandhan Bank and Garware Hi go up and down completely randomly.
Pair Corralation between Bandhan Bank and Garware Hi
Assuming the 90 days trading horizon Bandhan Bank is expected to generate 22.74 times less return on investment than Garware Hi. But when comparing it to its historical volatility, Bandhan Bank Limited is 2.77 times less risky than Garware Hi. It trades about 0.04 of its potential returns per unit of risk. Garware Hi Tech Films is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 396,045 in Garware Hi Tech Films on September 13, 2024 and sell it today you would earn a total of 124,160 from holding Garware Hi Tech Films or generate 31.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bandhan Bank Limited vs. Garware Hi Tech Films
Performance |
| Timeline |
| Bandhan Bank Limited |
| Garware Hi Tech |
Bandhan Bank and Garware Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bandhan Bank and Garware Hi
The main advantage of trading using opposite Bandhan Bank and Garware Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bandhan Bank position performs unexpectedly, Garware Hi 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 Garware Hi will offset losses from the drop in Garware Hi's long position.| Bandhan Bank vs. Reliance Industries Limited | Bandhan Bank vs. State Bank of | Bandhan Bank vs. Oil Natural Gas | Bandhan Bank vs. ICICI Bank Limited |
| Garware Hi vs. NMDC Limited | Garware Hi vs. Steel Authority of | Garware Hi vs. Embassy Office Parks | Garware Hi vs. Gujarat Narmada Valley |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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