Correlation Between Golden Tobacco and NIFTY SUMER
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By analyzing existing cross correlation between Golden Tobacco Limited and NIFTY SUMER DURABLES, you can compare the effects of market volatilities on Golden Tobacco and NIFTY SUMER 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 NIFTY SUMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and NIFTY SUMER.
Diversification Opportunities for Golden Tobacco and NIFTY SUMER
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and NIFTY is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco Limited and NIFTY SUMER DURABLES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIFTY SUMER DURABLES 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 NIFTY SUMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIFTY SUMER DURABLES has no effect on the direction of Golden Tobacco i.e., Golden Tobacco and NIFTY SUMER go up and down completely randomly.
Pair Corralation between Golden Tobacco and NIFTY SUMER
Assuming the 90 days trading horizon Golden Tobacco is expected to generate 1.52 times less return on investment than NIFTY SUMER. In addition to that, Golden Tobacco is 2.68 times more volatile than NIFTY SUMER DURABLES. It trades about 0.16 of its total potential returns per unit of risk. NIFTY SUMER DURABLES is currently generating about 0.64 per unit of volatility. If you would invest 3,877,930 in NIFTY SUMER DURABLES on September 16, 2024 and sell it today you would earn a total of 412,405 from holding NIFTY SUMER DURABLES or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Golden Tobacco Limited vs. NIFTY SUMER DURABLES
Performance |
| Timeline |
Golden Tobacco and NIFTY SUMER Volatility Contrast
Predicted Return Density |
| Returns |
Golden Tobacco Limited
Pair trading matchups for Golden Tobacco
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Pair Trading with Golden Tobacco and NIFTY SUMER
The main advantage of trading using opposite Golden Tobacco and NIFTY SUMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco position performs unexpectedly, NIFTY SUMER 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 NIFTY SUMER will offset losses from the drop in NIFTY SUMER's long position.| Golden Tobacco vs. PB Fintech Limited | Golden Tobacco vs. Silly Monks Entertainment | Golden Tobacco vs. Zee Entertainment Enterprises | Golden Tobacco vs. Jaypee Infratech Limited |
| NIFTY SUMER vs. Cambridge Technology Enterprises | NIFTY SUMER vs. Gujarat Lease Financing | NIFTY SUMER vs. Ratnamani Metals Tubes | NIFTY SUMER vs. Golden Tobacco 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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