Correlation Between Golden Tobacco and Poly Medicure
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By analyzing existing cross correlation between Golden Tobacco Limited and Poly Medicure Limited, you can compare the effects of market volatilities on Golden Tobacco and Poly Medicure 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 Poly Medicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and Poly Medicure.
Diversification Opportunities for Golden Tobacco and Poly Medicure
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Poly is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco Limited and Poly Medicure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Medicure Limited 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 Poly Medicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Medicure Limited has no effect on the direction of Golden Tobacco i.e., Golden Tobacco and Poly Medicure go up and down completely randomly.
Pair Corralation between Golden Tobacco and Poly Medicure
Assuming the 90 days trading horizon Golden Tobacco is expected to generate 9.29 times less return on investment than Poly Medicure. But when comparing it to its historical volatility, Golden Tobacco Limited is 1.12 times less risky than Poly Medicure. It trades about 0.01 of its potential returns per unit of risk. Poly Medicure Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 179,160 in Poly Medicure Limited on November 28, 2024 and sell it today you would earn a total of 38,975 from holding Poly Medicure Limited or generate 21.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Golden Tobacco Limited vs. Poly Medicure Limited
Performance |
| Timeline |
| Golden Tobacco |
| Poly Medicure Limited |
Golden Tobacco and Poly Medicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tobacco and Poly Medicure
The main advantage of trading using opposite Golden Tobacco and Poly Medicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco position performs unexpectedly, Poly Medicure 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 Poly Medicure will offset losses from the drop in Poly Medicure's long position.| Golden Tobacco vs. Garuda Construction Engineering | Golden Tobacco vs. Pritish Nandy Communications | Golden Tobacco vs. EMBASSY OFFICE PARKS | Golden Tobacco vs. Kavveri Telecom Products |
| Poly Medicure vs. Bikaji Foods International | Poly Medicure vs. Home First Finance | Poly Medicure vs. Praxis Home Retail | Poly Medicure vs. EMBASSY OFFICE PARKS |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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