Correlation Between CREDITACCESS GRAMEEN and ILFS Investment
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and ILFS Investment Managers, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and ILFS Investment 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 ILFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and ILFS Investment.
Diversification Opportunities for CREDITACCESS GRAMEEN and ILFS Investment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREDITACCESS and ILFS is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and ILFS Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILFS Investment Managers 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 ILFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILFS Investment Managers has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and ILFS Investment go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and ILFS Investment
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN is expected to generate 9.81 times less return on investment than ILFS Investment. But when comparing it to its historical volatility, CREDITACCESS GRAMEEN LIMITED is 1.32 times less risky than ILFS Investment. It trades about 0.01 of its potential returns per unit of risk. ILFS Investment Managers is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 550.00 in ILFS Investment Managers on October 29, 2024 and sell it today you would earn a total of 510.00 from holding ILFS Investment Managers or generate 92.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.55% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. ILFS Investment Managers
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| ILFS Investment Managers |
CREDITACCESS GRAMEEN and ILFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and ILFS Investment
The main advantage of trading using opposite CREDITACCESS GRAMEEN and ILFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, ILFS Investment 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 ILFS Investment will offset losses from the drop in ILFS Investment's long position.| CREDITACCESS GRAMEEN vs. Dhunseri Investments Limited | CREDITACCESS GRAMEEN vs. Rajnandini Metal Limited | CREDITACCESS GRAMEEN vs. Shivalik Bimetal Controls | CREDITACCESS GRAMEEN vs. Nalwa Sons Investments |
| ILFS Investment vs. Nalwa Sons Investments | ILFS Investment vs. Kalyani Investment | ILFS Investment vs. Pilani Investment and | ILFS Investment vs. Kingfa Science Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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