Correlation Between Bosch and Golden Tobacco
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By analyzing existing cross correlation between Bosch Limited and Golden Tobacco Limited, you can compare the effects of market volatilities on Bosch and Golden Tobacco 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 Golden Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch and Golden Tobacco.
Diversification Opportunities for Bosch and Golden Tobacco
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bosch and Golden is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Limited and Golden Tobacco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Tobacco 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 Golden Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Tobacco has no effect on the direction of Bosch i.e., Bosch and Golden Tobacco go up and down completely randomly.
Pair Corralation between Bosch and Golden Tobacco
Assuming the 90 days trading horizon Bosch Limited is expected to generate 0.76 times more return on investment than Golden Tobacco. However, Bosch Limited is 1.31 times less risky than Golden Tobacco. It trades about 0.08 of its potential returns per unit of risk. Golden Tobacco Limited is currently generating about -0.01 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. Golden Tobacco Limited
Performance |
| Timeline |
| Bosch Limited |
| Golden Tobacco |
Bosch and Golden Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch and Golden Tobacco
The main advantage of trading using opposite Bosch and Golden Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch position performs unexpectedly, Golden Tobacco 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 Golden Tobacco will offset losses from the drop in Golden Tobacco's long position.| Bosch vs. Vraj Iron and | Bosch vs. Blue Coast Hotels | Bosch vs. Hindustan Construction | Bosch vs. Vibhor Steel Tubes |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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