Correlation Between Fortis Healthcare and GAIL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fortis Healthcare Limited and GAIL Limited, you can compare the effects of market volatilities on Fortis Healthcare and GAIL 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 Fortis Healthcare with a short position of GAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortis Healthcare and GAIL.
Diversification Opportunities for Fortis Healthcare and GAIL
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortis and GAIL is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fortis Healthcare Limited and GAIL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAIL Limited and Fortis Healthcare 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 Fortis Healthcare Limited are associated (or correlated) with GAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAIL Limited has no effect on the direction of Fortis Healthcare i.e., Fortis Healthcare and GAIL go up and down completely randomly.
Pair Corralation between Fortis Healthcare and GAIL
Assuming the 90 days trading horizon Fortis Healthcare Limited is expected to generate 0.78 times more return on investment than GAIL. However, Fortis Healthcare Limited is 1.28 times less risky than GAIL. It trades about 0.12 of its potential returns per unit of risk. GAIL Limited is currently generating about 0.09 per unit of risk. If you would invest 28,534 in Fortis Healthcare Limited on August 28, 2024 and sell it today you would earn a total of 41,251 from holding Fortis Healthcare Limited or generate 144.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Fortis Healthcare Limited vs. GAIL Limited
Performance |
| Timeline |
| Fortis Healthcare |
| GAIL Limited |
Fortis Healthcare and GAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortis Healthcare and GAIL
The main advantage of trading using opposite Fortis Healthcare and GAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortis Healthcare position performs unexpectedly, GAIL 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 GAIL will offset losses from the drop in GAIL's long position.| Fortis Healthcare vs. Indian Metals Ferro | Fortis Healthcare vs. Sonata Software Limited | Fortis Healthcare vs. Tips Music Limited | Fortis Healthcare vs. Newgen Software Technologies |
| GAIL vs. Nucleus Software Exports | GAIL vs. Tamilnadu Telecommunication Limited | GAIL vs. Reliance Communications Limited | GAIL vs. Pritish Nandy Communications |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |