Correlation Between General Insurance and Bombay Dyeing
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By analyzing existing cross correlation between General Insurance and Bombay Dyeing Mfg, you can compare the effects of market volatilities on General Insurance and Bombay Dyeing 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 Bombay Dyeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Bombay Dyeing.
Diversification Opportunities for General Insurance and Bombay Dyeing
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and Bombay is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Bombay Dyeing Mfg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bombay Dyeing Mfg 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 Bombay Dyeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bombay Dyeing Mfg has no effect on the direction of General Insurance i.e., General Insurance and Bombay Dyeing go up and down completely randomly.
Pair Corralation between General Insurance and Bombay Dyeing
Assuming the 90 days trading horizon General Insurance is expected to generate 1.06 times more return on investment than Bombay Dyeing. However, General Insurance is 1.06 times more volatile than Bombay Dyeing Mfg. It trades about 0.07 of its potential returns per unit of risk. Bombay Dyeing Mfg is currently generating about 0.0 per unit of risk. If you would invest 21,830 in General Insurance on November 28, 2024 and sell it today you would earn a total of 17,305 from holding General Insurance or generate 79.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Bombay Dyeing Mfg
Performance |
| Timeline |
| General Insurance |
| Bombay Dyeing Mfg |
General Insurance and Bombay Dyeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Bombay Dyeing
The main advantage of trading using opposite General Insurance and Bombay Dyeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Bombay Dyeing 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 Dyeing will offset losses from the drop in Bombay Dyeing'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 |
| Bombay Dyeing vs. CSB Bank Limited | Bombay Dyeing vs. IDFC First Bank | Bombay Dyeing vs. Sintex Plastics Technology | Bombay Dyeing vs. GM Breweries 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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