Correlation Between GM Breweries and COSMO FIRST
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By analyzing existing cross correlation between GM Breweries Limited and COSMO FIRST LIMITED, you can compare the effects of market volatilities on GM Breweries and COSMO FIRST 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 GM Breweries with a short position of COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM Breweries and COSMO FIRST.
Diversification Opportunities for GM Breweries and COSMO FIRST
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GMBREW and COSMO is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding GM Breweries Limited and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST LIMITED and GM Breweries 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 GM Breweries Limited are associated (or correlated) with COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of GM Breweries i.e., GM Breweries and COSMO FIRST go up and down completely randomly.
Pair Corralation between GM Breweries and COSMO FIRST
Assuming the 90 days trading horizon GM Breweries Limited is expected to under-perform the COSMO FIRST. But the stock apears to be less risky and, when comparing its historical volatility, GM Breweries Limited is 1.96 times less risky than COSMO FIRST. The stock trades about -0.06 of its potential returns per unit of risk. The COSMO FIRST LIMITED is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 75,290 in COSMO FIRST LIMITED on October 25, 2024 and sell it today you would earn a total of 3,550 from holding COSMO FIRST LIMITED or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GM Breweries Limited vs. COSMO FIRST LIMITED
Performance |
| Timeline |
| GM Breweries Limited |
| COSMO FIRST LIMITED |
GM Breweries and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM Breweries and COSMO FIRST
The main advantage of trading using opposite GM Breweries and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM Breweries position performs unexpectedly, COSMO FIRST 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 COSMO FIRST will offset losses from the drop in COSMO FIRST's long position.| GM Breweries vs. Taj GVK Hotels | GM Breweries vs. Newgen Software Technologies | GM Breweries vs. Chalet Hotels Limited | GM Breweries vs. The Indian Hotels |
| COSMO FIRST vs. Hindcon Chemicals Limited | COSMO FIRST vs. JGCHEMICALS LIMITED | COSMO FIRST vs. Rashtriya Chemicals and | COSMO FIRST vs. Aarey Drugs Pharmaceuticals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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