Correlation Between Golden Tobacco and BLS International
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By analyzing existing cross correlation between Golden Tobacco Limited and BLS International Services, you can compare the effects of market volatilities on Golden Tobacco and BLS International 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 Golden Tobacco with a short position of BLS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and BLS International.
Diversification Opportunities for Golden Tobacco and BLS International
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Golden and BLS is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco Limited and BLS International Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLS International and Golden Tobacco 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 Golden Tobacco Limited are associated (or correlated) with BLS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLS International has no effect on the direction of Golden Tobacco i.e., Golden Tobacco and BLS International go up and down completely randomly.
Pair Corralation between Golden Tobacco and BLS International
Assuming the 90 days trading horizon Golden Tobacco Limited is expected to generate 0.79 times more return on investment than BLS International. However, Golden Tobacco Limited is 1.26 times less risky than BLS International. It trades about 0.03 of its potential returns per unit of risk. BLS International Services is currently generating about -0.03 per unit of risk. If you would invest 3,750 in Golden Tobacco Limited on October 24, 2024 and sell it today you would earn a total of 45.00 from holding Golden Tobacco Limited or generate 1.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Golden Tobacco Limited vs. BLS International Services
Performance |
Timeline |
Golden Tobacco |
BLS International |
Golden Tobacco and BLS International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golden Tobacco and BLS International
The main advantage of trading using opposite Golden Tobacco and BLS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco position performs unexpectedly, BLS International 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 BLS International will offset losses from the drop in BLS International's long position.Golden Tobacco vs. Baazar Style Retail | Golden Tobacco vs. Ortel Communications Limited | Golden Tobacco vs. UFO Moviez India | Golden Tobacco vs. One 97 Communications |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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