Correlation Between Gillette India and Automotive Stampings
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By analyzing existing cross correlation between Gillette India Limited and Automotive Stampings and, you can compare the effects of market volatilities on Gillette India and Automotive Stampings 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 Gillette India with a short position of Automotive Stampings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gillette India and Automotive Stampings.
Diversification Opportunities for Gillette India and Automotive Stampings
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gillette and Automotive is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gillette India Limited and Automotive Stampings and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automotive Stampings and and Gillette India 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 Gillette India Limited are associated (or correlated) with Automotive Stampings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automotive Stampings and has no effect on the direction of Gillette India i.e., Gillette India and Automotive Stampings go up and down completely randomly.
Pair Corralation between Gillette India and Automotive Stampings
Assuming the 90 days trading horizon Gillette India Limited is expected to under-perform the Automotive Stampings. But the stock apears to be less risky and, when comparing its historical volatility, Gillette India Limited is 1.71 times less risky than Automotive Stampings. The stock trades about -0.07 of its potential returns per unit of risk. The Automotive Stampings and is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 67,160 in Automotive Stampings and on September 27, 2024 and sell it today you would earn a total of 1,240 from holding Automotive Stampings and or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gillette India Limited vs. Automotive Stampings and
Performance |
| Timeline |
| Gillette India |
| Automotive Stampings and |
Gillette India and Automotive Stampings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gillette India and Automotive Stampings
The main advantage of trading using opposite Gillette India and Automotive Stampings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gillette India position performs unexpectedly, Automotive Stampings 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 Automotive Stampings will offset losses from the drop in Automotive Stampings' long position.| Gillette India vs. Automotive Stampings and | Gillette India vs. The Orissa Minerals | Gillette India vs. Malu Paper Mills | Gillette India vs. Kingfa Science Technology |
| Automotive Stampings vs. Reliance Industries Limited | Automotive Stampings vs. Life Insurance | Automotive Stampings vs. Indian Oil | Automotive Stampings vs. Oil Natural Gas |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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