Correlation Between CREDITACCESS GRAMEEN and Reliance Home
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Reliance Home Finance, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and Reliance Home 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 Reliance Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Reliance Home.
Diversification Opportunities for CREDITACCESS GRAMEEN and Reliance Home
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREDITACCESS and Reliance is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and Reliance Home Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Home Finance 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 Reliance Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Home Finance has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Reliance Home go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Reliance Home
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 1.49 times more return on investment than Reliance Home. However, CREDITACCESS GRAMEEN is 1.49 times more volatile than Reliance Home Finance. It trades about 0.12 of its potential returns per unit of risk. Reliance Home Finance is currently generating about 0.04 per unit of risk. If you would invest 91,125 in CREDITACCESS GRAMEEN LIMITED on November 6, 2024 and sell it today you would earn a total of 10,545 from holding CREDITACCESS GRAMEEN LIMITED or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. Reliance Home Finance
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| Reliance Home Finance |
CREDITACCESS GRAMEEN and Reliance Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and Reliance Home
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Reliance Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, Reliance Home 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 Reliance Home will offset losses from the drop in Reliance Home's long position.| CREDITACCESS GRAMEEN vs. Navneet Education Limited | CREDITACCESS GRAMEEN vs. General Insurance | CREDITACCESS GRAMEEN vs. Edelweiss Financial Services | CREDITACCESS GRAMEEN vs. Punjab National Bank |
| Reliance Home vs. Industrial Investment Trust | Reliance Home vs. General Insurance | Reliance Home vs. Lakshmi Finance Industrial | Reliance Home vs. City Union Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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