Correlation Between Blue Coast and Bank of Maharashtra
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By analyzing existing cross correlation between Blue Coast Hotels and Bank of Maharashtra, you can compare the effects of market volatilities on Blue Coast and Bank of Maharashtra 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 Blue Coast with a short position of Bank of Maharashtra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Bank of Maharashtra.
Diversification Opportunities for Blue Coast and Bank of Maharashtra
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Bank is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Bank of Maharashtra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Maharashtra and Blue Coast 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 Blue Coast Hotels are associated (or correlated) with Bank of Maharashtra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Maharashtra has no effect on the direction of Blue Coast i.e., Blue Coast and Bank of Maharashtra go up and down completely randomly.
Pair Corralation between Blue Coast and Bank of Maharashtra
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 1.01 times more return on investment than Bank of Maharashtra. However, Blue Coast is 1.01 times more volatile than Bank of Maharashtra. It trades about 0.21 of its potential returns per unit of risk. Bank of Maharashtra is currently generating about 0.07 per unit of risk. If you would invest 695.00 in Blue Coast Hotels on November 9, 2024 and sell it today you would earn a total of 2,578 from holding Blue Coast Hotels or generate 370.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 62.94% |
| Values | Daily Returns |
Blue Coast Hotels vs. Bank of Maharashtra
Performance |
| Timeline |
| Blue Coast Hotels |
| Bank of Maharashtra |
Blue Coast and Bank of Maharashtra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Bank of Maharashtra
The main advantage of trading using opposite Blue Coast and Bank of Maharashtra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Bank of Maharashtra 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 Bank of Maharashtra will offset losses from the drop in Bank of Maharashtra's long position.| Blue Coast vs. Golden Tobacco Limited | Blue Coast vs. SAL Steel Limited | Blue Coast vs. Sunflag Iron And | Blue Coast vs. Landmark Cars Limited |
| Bank of Maharashtra vs. Pritish Nandy Communications | Bank of Maharashtra vs. Nalwa Sons Investments | Bank of Maharashtra vs. Network18 Media Investments | Bank of Maharashtra vs. Jindal Poly Investment |
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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