Correlation Between General Insurance and Bajaj Healthcare
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By analyzing existing cross correlation between General Insurance and Bajaj Healthcare Limited, you can compare the effects of market volatilities on General Insurance and Bajaj Healthcare 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 General Insurance with a short position of Bajaj Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Bajaj Healthcare.
Diversification Opportunities for General Insurance and Bajaj Healthcare
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between General and Bajaj is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Bajaj Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Healthcare and General Insurance 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 General Insurance are associated (or correlated) with Bajaj Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Healthcare has no effect on the direction of General Insurance i.e., General Insurance and Bajaj Healthcare go up and down completely randomly.
Pair Corralation between General Insurance and Bajaj Healthcare
Assuming the 90 days trading horizon General Insurance is expected to under-perform the Bajaj Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, General Insurance is 1.93 times less risky than Bajaj Healthcare. The stock trades about -0.02 of its potential returns per unit of risk. The Bajaj Healthcare Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 53,000 in Bajaj Healthcare Limited on November 28, 2024 and sell it today you would earn a total of 9,930 from holding Bajaj Healthcare Limited or generate 18.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Bajaj Healthcare Limited
Performance |
| Timeline |
| General Insurance |
| Bajaj Healthcare |
General Insurance and Bajaj Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Bajaj Healthcare
The main advantage of trading using opposite General Insurance and Bajaj Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Bajaj Healthcare 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 Bajaj Healthcare will offset losses from the drop in Bajaj Healthcare's long position.| General Insurance vs. CREDITACCESS GRAMEEN LIMITED | General Insurance vs. KNR Constructions Limited | General Insurance vs. RBL Bank Limited | General Insurance vs. Clean Science and |
| Bajaj Healthcare vs. Transport of | Bajaj Healthcare vs. Ratnamani Metals Tubes | Bajaj Healthcare vs. Manaksia Coated Metals | Bajaj Healthcare vs. Shyam Metalics and |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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