Correlation Between Gangotri Textiles and Bombay Burmah
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By analyzing existing cross correlation between Gangotri Textiles Limited and Bombay Burmah Trading, you can compare the effects of market volatilities on Gangotri Textiles and Bombay Burmah 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 Gangotri Textiles with a short position of Bombay Burmah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gangotri Textiles and Bombay Burmah.
Diversification Opportunities for Gangotri Textiles and Bombay Burmah
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gangotri and Bombay is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gangotri Textiles Limited and Bombay Burmah Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bombay Burmah Trading and Gangotri Textiles 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 Gangotri Textiles Limited are associated (or correlated) with Bombay Burmah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bombay Burmah Trading has no effect on the direction of Gangotri Textiles i.e., Gangotri Textiles and Bombay Burmah go up and down completely randomly.
Pair Corralation between Gangotri Textiles and Bombay Burmah
Assuming the 90 days trading horizon Gangotri Textiles Limited is expected to under-perform the Bombay Burmah. But the stock apears to be less risky and, when comparing its historical volatility, Gangotri Textiles Limited is 2.73 times less risky than Bombay Burmah. The stock trades about -0.14 of its potential returns per unit of risk. The Bombay Burmah Trading is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 208,985 in Bombay Burmah Trading on November 5, 2024 and sell it today you would earn a total of 2,830 from holding Bombay Burmah Trading or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gangotri Textiles Limited vs. Bombay Burmah Trading
Performance |
| Timeline |
| Gangotri Textiles |
| Bombay Burmah Trading |
Gangotri Textiles and Bombay Burmah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gangotri Textiles and Bombay Burmah
The main advantage of trading using opposite Gangotri Textiles and Bombay Burmah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gangotri Textiles position performs unexpectedly, Bombay Burmah 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 Bombay Burmah will offset losses from the drop in Bombay Burmah's long position.| Gangotri Textiles vs. Megastar Foods Limited | Gangotri Textiles vs. Apex Frozen Foods | Gangotri Textiles vs. Patanjali Foods Limited | Gangotri Textiles vs. Dodla Dairy Limited |
| Bombay Burmah vs. Tata Investment | Bombay Burmah vs. Hexa Tradex Limited | Bombay Burmah vs. POWERGRID Infrastructure Investment | Bombay Burmah vs. Akme Fintrade India |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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