Correlation Between CREDITACCESS GRAMEEN and Gangotri Textiles
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Gangotri Textiles Limited, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and Gangotri Textiles 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 Gangotri Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Gangotri Textiles.
Diversification Opportunities for CREDITACCESS GRAMEEN and Gangotri Textiles
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CREDITACCESS and Gangotri is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and Gangotri Textiles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gangotri Textiles 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 Gangotri Textiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gangotri Textiles has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Gangotri Textiles go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Gangotri Textiles
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 2.13 times more return on investment than Gangotri Textiles. However, CREDITACCESS GRAMEEN is 2.13 times more volatile than Gangotri Textiles Limited. It trades about 0.12 of its potential returns per unit of risk. Gangotri Textiles Limited is currently generating about -0.14 per unit of risk. If you would invest 91,660 in CREDITACCESS GRAMEEN LIMITED on October 11, 2024 and sell it today you would earn a total of 8,295 from holding CREDITACCESS GRAMEEN LIMITED or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. Gangotri Textiles Limited
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| Gangotri Textiles |
CREDITACCESS GRAMEEN and Gangotri Textiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and Gangotri Textiles
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Gangotri Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, Gangotri Textiles 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 Gangotri Textiles will offset losses from the drop in Gangotri Textiles' long position.| CREDITACCESS GRAMEEN vs. Vraj Iron and | CREDITACCESS GRAMEEN vs. Kalyani Steels Limited | CREDITACCESS GRAMEEN vs. HDFC Asset Management | CREDITACCESS GRAMEEN vs. STEEL EXCHANGE INDIA |
| Gangotri Textiles vs. Punjab National Bank | Gangotri Textiles vs. Motilal Oswal Financial | Gangotri Textiles vs. Allied Blenders Distillers | Gangotri Textiles vs. CREDITACCESS GRAMEEN 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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