Correlation Between GAIL and Ratnamani Metals
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By analyzing existing cross correlation between GAIL Limited and Ratnamani Metals Tubes, you can compare the effects of market volatilities on GAIL and Ratnamani Metals 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 GAIL with a short position of Ratnamani Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAIL and Ratnamani Metals.
Diversification Opportunities for GAIL and Ratnamani Metals
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAIL and Ratnamani is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding GAIL Limited and Ratnamani Metals Tubes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratnamani Metals Tubes and GAIL 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 GAIL Limited are associated (or correlated) with Ratnamani Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratnamani Metals Tubes has no effect on the direction of GAIL i.e., GAIL and Ratnamani Metals go up and down completely randomly.
Pair Corralation between GAIL and Ratnamani Metals
Assuming the 90 days trading horizon GAIL Limited is expected to generate 1.29 times more return on investment than Ratnamani Metals. However, GAIL is 1.29 times more volatile than Ratnamani Metals Tubes. It trades about 0.08 of its potential returns per unit of risk. Ratnamani Metals Tubes is currently generating about 0.01 per unit of risk. If you would invest 14,066 in GAIL Limited on September 12, 2024 and sell it today you would earn a total of 6,688 from holding GAIL Limited or generate 47.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
GAIL Limited vs. Ratnamani Metals Tubes
Performance |
| Timeline |
| GAIL Limited |
| Ratnamani Metals Tubes |
GAIL and Ratnamani Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAIL and Ratnamani Metals
The main advantage of trading using opposite GAIL and Ratnamani Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAIL position performs unexpectedly, Ratnamani Metals 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 Ratnamani Metals will offset losses from the drop in Ratnamani Metals' long position.| GAIL vs. Ratnamani Metals Tubes | GAIL vs. UTI Asset Management | GAIL vs. Hindustan Copper Limited | GAIL vs. Hisar Metal Industries |
| Ratnamani Metals vs. Steel Authority of | Ratnamani Metals vs. Embassy Office Parks | Ratnamani Metals vs. Indian Metals Ferro | Ratnamani Metals vs. JTL Industries |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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