Correlation Between Fedbank Financial and Gillette India
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By analyzing existing cross correlation between Fedbank Financial Services and Gillette India Limited, you can compare the effects of market volatilities on Fedbank Financial and Gillette India 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 Fedbank Financial with a short position of Gillette India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fedbank Financial and Gillette India.
Diversification Opportunities for Fedbank Financial and Gillette India
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fedbank and Gillette is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fedbank Financial Services and Gillette India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gillette India and Fedbank Financial 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 Fedbank Financial Services are associated (or correlated) with Gillette India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gillette India has no effect on the direction of Fedbank Financial i.e., Fedbank Financial and Gillette India go up and down completely randomly.
Pair Corralation between Fedbank Financial and Gillette India
Assuming the 90 days trading horizon Fedbank Financial Services is expected to under-perform the Gillette India. But the stock apears to be less risky and, when comparing its historical volatility, Fedbank Financial Services is 1.7 times less risky than Gillette India. The stock trades about -0.41 of its potential returns per unit of risk. The Gillette India Limited is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 981,270 in Gillette India Limited on October 30, 2024 and sell it today you would lose (81,650) from holding Gillette India Limited or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Fedbank Financial Services vs. Gillette India Limited
Performance |
| Timeline |
| Fedbank Financial |
| Gillette India |
Fedbank Financial and Gillette India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fedbank Financial and Gillette India
The main advantage of trading using opposite Fedbank Financial and Gillette India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fedbank Financial position performs unexpectedly, Gillette India 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 Gillette India will offset losses from the drop in Gillette India's long position.| Fedbank Financial vs. Sonata Software Limited | Fedbank Financial vs. V2 Retail Limited | Fedbank Financial vs. Syrma SGS Technology | Fedbank Financial vs. United Drilling Tools |
| Gillette India vs. MRF Limited | Gillette India vs. The Orissa Minerals | Gillette India vs. Honeywell Automation India | Gillette India vs. Page Industries 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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