Correlation Between Dixon Technologies and Great Eastern
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By analyzing existing cross correlation between Dixon Technologies Limited and The Great Eastern, you can compare the effects of market volatilities on Dixon Technologies and Great Eastern 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 Dixon Technologies with a short position of Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dixon Technologies and Great Eastern.
Diversification Opportunities for Dixon Technologies and Great Eastern
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dixon and Great is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dixon Technologies Limited and The Great Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Eastern and Dixon Technologies 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 Dixon Technologies Limited are associated (or correlated) with Great Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Eastern has no effect on the direction of Dixon Technologies i.e., Dixon Technologies and Great Eastern go up and down completely randomly.
Pair Corralation between Dixon Technologies and Great Eastern
Assuming the 90 days trading horizon Dixon Technologies Limited is expected to generate 1.02 times more return on investment than Great Eastern. However, Dixon Technologies is 1.02 times more volatile than The Great Eastern. It trades about 0.16 of its potential returns per unit of risk. The Great Eastern is currently generating about 0.06 per unit of risk. If you would invest 266,290 in Dixon Technologies Limited on November 2, 2024 and sell it today you would earn a total of 1,199,695 from holding Dixon Technologies Limited or generate 450.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dixon Technologies Limited vs. The Great Eastern
Performance |
| Timeline |
| Dixon Technologies |
| Great Eastern |
Dixon Technologies and Great Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dixon Technologies and Great Eastern
The main advantage of trading using opposite Dixon Technologies and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dixon Technologies position performs unexpectedly, Great Eastern 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 Great Eastern will offset losses from the drop in Great Eastern's long position.| Dixon Technologies vs. UCO Bank | Dixon Technologies vs. Hilton Metal Forging | Dixon Technologies vs. Ankit Metal Power | Dixon Technologies vs. Bank of Maharashtra |
| Great Eastern vs. Sarveshwar Foods Limited | Great Eastern vs. Ratnamani Metals Tubes | Great Eastern vs. Apex Frozen Foods | Great Eastern vs. Industrial Investment Trust |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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