Correlation Between Gujarat Lease and Spencers Retail
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gujarat Lease Financing and Spencers Retail Limited, you can compare the effects of market volatilities on Gujarat Lease and Spencers Retail 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 Gujarat Lease with a short position of Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Lease and Spencers Retail.
Diversification Opportunities for Gujarat Lease and Spencers Retail
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gujarat and Spencers is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Lease Financing and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail and Gujarat Lease 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 Gujarat Lease Financing are associated (or correlated) with Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Gujarat Lease i.e., Gujarat Lease and Spencers Retail go up and down completely randomly.
Pair Corralation between Gujarat Lease and Spencers Retail
Assuming the 90 days trading horizon Gujarat Lease Financing is expected to generate 0.78 times more return on investment than Spencers Retail. However, Gujarat Lease Financing is 1.27 times less risky than Spencers Retail. It trades about -0.36 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.29 per unit of risk. If you would invest 636.00 in Gujarat Lease Financing on December 8, 2024 and sell it today you would lose (111.00) from holding Gujarat Lease Financing or give up 17.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gujarat Lease Financing vs. Spencers Retail Limited
Performance |
| Timeline |
| Gujarat Lease Financing |
| Spencers Retail |
Gujarat Lease and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gujarat Lease and Spencers Retail
The main advantage of trading using opposite Gujarat Lease and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Lease position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| Gujarat Lease vs. Mangalore Chemicals Fertilizers | Gujarat Lease vs. ZF Commercial Vehicle | Gujarat Lease vs. Golden Tobacco Limited | Gujarat Lease vs. Bhagiradha Chemicals Industries |
| Spencers Retail vs. Le Travenues Technology | Spencers Retail vs. FCS Software Solutions | Spencers Retail vs. Indraprastha Medical | Spencers Retail vs. Syrma SGS Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |