Correlation Between CREDITACCESS GRAMEEN and Data Patterns
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Data Patterns Limited, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and Data Patterns 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 CREDITACCESS GRAMEEN with a short position of Data Patterns. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Data Patterns.
Diversification Opportunities for CREDITACCESS GRAMEEN and Data Patterns
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREDITACCESS and Data is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and Data Patterns Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Patterns Limited and CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED are associated (or correlated) with Data Patterns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Patterns Limited has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Data Patterns go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Data Patterns
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to under-perform the Data Patterns. But the stock apears to be less risky and, when comparing its historical volatility, CREDITACCESS GRAMEEN LIMITED is 1.28 times less risky than Data Patterns. The stock trades about -0.05 of its potential returns per unit of risk. The Data Patterns Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 202,597 in Data Patterns Limited on November 5, 2024 and sell it today you would earn a total of 18,143 from holding Data Patterns Limited or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.3% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. Data Patterns Limited
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| Data Patterns Limited |
CREDITACCESS GRAMEEN and Data Patterns Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and Data Patterns
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Data Patterns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, Data Patterns 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 Data Patterns will offset losses from the drop in Data Patterns' long position.| CREDITACCESS GRAMEEN vs. Praxis Home Retail | CREDITACCESS GRAMEEN vs. Network18 Media Investments | CREDITACCESS GRAMEEN vs. Baazar Style Retail | CREDITACCESS GRAMEEN vs. Infomedia Press Limited |
| Data Patterns vs. ICICI Securities Limited | Data Patterns vs. Nippon Life India | Data Patterns vs. Fortis Healthcare Limited | Data Patterns vs. ICICI Lombard General |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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