Correlation Between Bosch and Bajaj Healthcare
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By analyzing existing cross correlation between Bosch Limited and Bajaj Healthcare Limited, you can compare the effects of market volatilities on Bosch and Bajaj Healthcare 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 Bosch with a short position of Bajaj Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch and Bajaj Healthcare.
Diversification Opportunities for Bosch and Bajaj Healthcare
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosch and Bajaj is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Limited and Bajaj Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Healthcare and Bosch 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 Bosch Limited are associated (or correlated) with Bajaj Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Healthcare has no effect on the direction of Bosch i.e., Bosch and Bajaj Healthcare go up and down completely randomly.
Pair Corralation between Bosch and Bajaj Healthcare
Assuming the 90 days trading horizon Bosch Limited is expected to generate 0.7 times more return on investment than Bajaj Healthcare. However, Bosch Limited is 1.42 times less risky than Bajaj Healthcare. It trades about 0.08 of its potential returns per unit of risk. Bajaj Healthcare Limited is currently generating about 0.03 per unit of risk. If you would invest 3,232,760 in Bosch Limited on September 2, 2024 and sell it today you would earn a total of 263,860 from holding Bosch Limited or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Bosch Limited vs. Bajaj Healthcare Limited
Performance |
| Timeline |
| Bosch Limited |
| Bajaj Healthcare |
Bosch and Bajaj Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch and Bajaj Healthcare
The main advantage of trading using opposite Bosch and Bajaj Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch position performs unexpectedly, Bajaj Healthcare 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 Bajaj Healthcare will offset losses from the drop in Bajaj Healthcare's long position.| Bosch vs. Vraj Iron and | Bosch vs. Blue Coast Hotels | Bosch vs. Hindustan Construction | Bosch vs. Vibhor Steel Tubes |
| Bajaj Healthcare vs. MRF Limited | Bajaj Healthcare vs. Bosch Limited | Bajaj Healthcare vs. Bajaj Holdings Investment | Bajaj Healthcare vs. Vardhman Holdings Limited |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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