Correlation Between Britannia Industries and Global Health
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By analyzing existing cross correlation between Britannia Industries Limited and Global Health Limited, you can compare the effects of market volatilities on Britannia Industries and Global Health 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 Britannia Industries with a short position of Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Britannia Industries and Global Health.
Diversification Opportunities for Britannia Industries and Global Health
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Britannia and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Britannia Industries Limited and Global Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health Limited and Britannia Industries 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 Britannia Industries Limited are associated (or correlated) with Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health Limited has no effect on the direction of Britannia Industries i.e., Britannia Industries and Global Health go up and down completely randomly.
Pair Corralation between Britannia Industries and Global Health
Assuming the 90 days trading horizon Britannia Industries is expected to generate 11.77 times less return on investment than Global Health. But when comparing it to its historical volatility, Britannia Industries Limited is 1.67 times less risky than Global Health. It trades about 0.01 of its potential returns per unit of risk. Global Health Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 60,550 in Global Health Limited on August 31, 2024 and sell it today you would earn a total of 46,965 from holding Global Health Limited or generate 77.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Britannia Industries Limited vs. Global Health Limited
Performance |
| Timeline |
| Britannia Industries |
| Global Health Limited |
Britannia Industries and Global Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Britannia Industries and Global Health
The main advantage of trading using opposite Britannia Industries and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Britannia Industries position performs unexpectedly, Global Health 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 Global Health will offset losses from the drop in Global Health's long position.| Britannia Industries vs. Global Health Limited | Britannia Industries vs. Entero Healthcare Solutions | Britannia Industries vs. Fortis Healthcare Limited | Britannia Industries vs. Agro Tech Foods |
| Global Health vs. Global Education Limited | Global Health vs. Zee Entertainment Enterprises | Global Health vs. Next Mediaworks Limited | Global Health vs. DJ Mediaprint Logistics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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