Correlation Between Great Eastern and Agro Tech
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By analyzing existing cross correlation between The Great Eastern and Agro Tech Foods, you can compare the effects of market volatilities on Great Eastern and Agro Tech 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 Great Eastern with a short position of Agro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Eastern and Agro Tech.
Diversification Opportunities for Great Eastern and Agro Tech
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and Agro is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding The Great Eastern and Agro Tech Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Tech Foods and Great Eastern 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 The Great Eastern are associated (or correlated) with Agro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Tech Foods has no effect on the direction of Great Eastern i.e., Great Eastern and Agro Tech go up and down completely randomly.
Pair Corralation between Great Eastern and Agro Tech
Assuming the 90 days trading horizon The Great Eastern is expected to generate 0.54 times more return on investment than Agro Tech. However, The Great Eastern is 1.86 times less risky than Agro Tech. It trades about 0.02 of its potential returns per unit of risk. Agro Tech Foods is currently generating about -0.06 per unit of risk. If you would invest 107,813 in The Great Eastern on September 14, 2024 and sell it today you would earn a total of 622.00 from holding The Great Eastern or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Great Eastern vs. Agro Tech Foods
Performance |
| Timeline |
| Great Eastern |
| Agro Tech Foods |
Great Eastern and Agro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Eastern and Agro Tech
The main advantage of trading using opposite Great Eastern and Agro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Eastern position performs unexpectedly, Agro Tech 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 Agro Tech will offset losses from the drop in Agro Tech's long position.| Great Eastern vs. Agro Tech Foods | Great Eastern vs. Fertilizers and Chemicals | Great Eastern vs. Mangalore Chemicals Fertilizers | Great Eastern vs. Univa Foods Limited |
| Agro Tech vs. State Bank of | Agro Tech vs. Life Insurance | Agro Tech vs. HDFC Bank Limited | Agro Tech vs. ICICI Bank 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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