Correlation Between Garware Hi-Tech and General Insurance
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By analyzing existing cross correlation between Garware Hi Tech Films and General Insurance, you can compare the effects of market volatilities on Garware Hi-Tech and General Insurance 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 Garware Hi-Tech with a short position of General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garware Hi-Tech and General Insurance.
Diversification Opportunities for Garware Hi-Tech and General Insurance
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Garware and General is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Garware Hi Tech Films and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance and Garware Hi-Tech 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 Garware Hi Tech Films are associated (or correlated) with General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of Garware Hi-Tech i.e., Garware Hi-Tech and General Insurance go up and down completely randomly.
Pair Corralation between Garware Hi-Tech and General Insurance
Assuming the 90 days trading horizon Garware Hi Tech Films is expected to generate 1.19 times more return on investment than General Insurance. However, Garware Hi-Tech is 1.19 times more volatile than General Insurance. It trades about 0.14 of its potential returns per unit of risk. General Insurance is currently generating about 0.09 per unit of risk. If you would invest 53,070 in Garware Hi Tech Films on November 28, 2024 and sell it today you would earn a total of 352,905 from holding Garware Hi Tech Films or generate 664.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garware Hi Tech Films vs. General Insurance
Performance |
| Timeline |
| Garware Hi Tech |
| General Insurance |
Garware Hi-Tech and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garware Hi-Tech and General Insurance
The main advantage of trading using opposite Garware Hi-Tech and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garware Hi-Tech position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| Garware Hi-Tech vs. JSW Steel Limited | Garware Hi-Tech vs. Vraj Iron and | Garware Hi-Tech vs. Sintex Plastics Technology | Garware Hi-Tech vs. Computer Age Management |
| General Insurance vs. CREDITACCESS GRAMEEN LIMITED | General Insurance vs. KNR Constructions Limited | General Insurance vs. RBL Bank Limited | General Insurance vs. Clean Science and |
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 Stocks Directory module to find actively traded stocks across global markets.
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