Correlation Between Fedbank Financial and Garware Hi
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By analyzing existing cross correlation between Fedbank Financial Services and Garware Hi Tech Films, you can compare the effects of market volatilities on Fedbank Financial and Garware Hi 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 Garware Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fedbank Financial and Garware Hi.
Diversification Opportunities for Fedbank Financial and Garware Hi
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fedbank and Garware is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fedbank Financial Services and Garware Hi Tech Films in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garware Hi Tech 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 Garware Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garware Hi Tech has no effect on the direction of Fedbank Financial i.e., Fedbank Financial and Garware Hi go up and down completely randomly.
Pair Corralation between Fedbank Financial and Garware Hi
Assuming the 90 days trading horizon Fedbank Financial Services is expected to under-perform the Garware Hi. But the stock apears to be less risky and, when comparing its historical volatility, Fedbank Financial Services is 1.64 times less risky than Garware Hi. The stock trades about -0.06 of its potential returns per unit of risk. The Garware Hi Tech Films is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 392,620 in Garware Hi Tech Films on October 14, 2024 and sell it today you would earn a total of 35,995 from holding Garware Hi Tech Films or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fedbank Financial Services vs. Garware Hi Tech Films
Performance |
| Timeline |
| Fedbank Financial |
| Garware Hi Tech |
Fedbank Financial and Garware Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fedbank Financial and Garware Hi
The main advantage of trading using opposite Fedbank Financial and Garware Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fedbank Financial position performs unexpectedly, Garware Hi 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 Garware Hi will offset losses from the drop in Garware Hi's long position.| Fedbank Financial vs. Kingfa Science Technology | Fedbank Financial vs. Rico Auto Industries | Fedbank Financial vs. GACM Technologies Limited | Fedbank Financial vs. COSMO FIRST LIMITED |
| Garware Hi vs. Fedbank Financial Services | Garware Hi vs. Industrial Investment Trust | Garware Hi vs. Kalyani Investment | Garware Hi vs. BF Investment 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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