Correlation Between GM Breweries and SIL Investments
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By analyzing existing cross correlation between GM Breweries Limited and SIL Investments Limited, you can compare the effects of market volatilities on GM Breweries and SIL Investments 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 SIL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM Breweries and SIL Investments.
Diversification Opportunities for GM Breweries and SIL Investments
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between GMBREW and SIL is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding GM Breweries Limited and SIL Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIL Investments 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 SIL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIL Investments has no effect on the direction of GM Breweries i.e., GM Breweries and SIL Investments go up and down completely randomly.
Pair Corralation between GM Breweries and SIL Investments
Assuming the 90 days trading horizon GM Breweries Limited is expected to generate 1.69 times more return on investment than SIL Investments. However, GM Breweries is 1.69 times more volatile than SIL Investments Limited. It trades about -0.17 of its potential returns per unit of risk. SIL Investments Limited is currently generating about -0.39 per unit of risk. If you would invest 83,365 in GM Breweries Limited on October 11, 2024 and sell it today you would lose (7,260) from holding GM Breweries Limited or give up 8.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GM Breweries Limited vs. SIL Investments Limited
Performance |
| Timeline |
| GM Breweries Limited |
| SIL Investments |
GM Breweries and SIL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM Breweries and SIL Investments
The main advantage of trading using opposite GM Breweries and SIL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM Breweries position performs unexpectedly, SIL Investments 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 SIL Investments will offset losses from the drop in SIL Investments' long position.| GM Breweries vs. Sanginita Chemicals Limited | GM Breweries vs. Hindcon Chemicals Limited | GM Breweries vs. Vishnu Chemicals Limited | GM Breweries vs. BF Investment Limited |
| SIL Investments vs. R S Software | SIL Investments vs. Praxis Home Retail | SIL Investments vs. Reliance Communications Limited | SIL Investments 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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