Correlation Between General Insurance and Taj GVK
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By analyzing existing cross correlation between General Insurance and Taj GVK Hotels, you can compare the effects of market volatilities on General Insurance and Taj GVK 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 Taj GVK. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Taj GVK.
Diversification Opportunities for General Insurance and Taj GVK
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and Taj is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Taj GVK Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taj GVK Hotels 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 Taj GVK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taj GVK Hotels has no effect on the direction of General Insurance i.e., General Insurance and Taj GVK go up and down completely randomly.
Pair Corralation between General Insurance and Taj GVK
Assuming the 90 days trading horizon General Insurance is expected to generate 1.21 times less return on investment than Taj GVK. But when comparing it to its historical volatility, General Insurance is 1.04 times less risky than Taj GVK. It trades about 0.07 of its potential returns per unit of risk. Taj GVK Hotels is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 32,535 in Taj GVK Hotels on September 12, 2024 and sell it today you would earn a total of 3,420 from holding Taj GVK Hotels or generate 10.51% 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. Taj GVK Hotels
Performance |
| Timeline |
| General Insurance |
| Taj GVK Hotels |
General Insurance and Taj GVK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Taj GVK
The main advantage of trading using opposite General Insurance and Taj GVK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Taj GVK 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 Taj GVK will offset losses from the drop in Taj GVK's long position.| General Insurance vs. Yes Bank Limited | General Insurance vs. Indian Oil | General Insurance vs. Indo Borax Chemicals | General Insurance vs. Kingfa Science Technology |
| Taj GVK vs. Hemisphere Properties India | Taj GVK vs. Indo Borax Chemicals | Taj GVK vs. Kingfa Science Technology | Taj GVK vs. Alkali Metals 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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