Correlation Between Garware Hi-Tech and SEPC
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By analyzing existing cross correlation between Garware Hi Tech Films and SEPC Limited, you can compare the effects of market volatilities on Garware Hi-Tech and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garware Hi-Tech and SEPC.
Diversification Opportunities for Garware Hi-Tech and SEPC
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Garware and SEPC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Garware Hi Tech Films and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC Limited 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of Garware Hi-Tech i.e., Garware Hi-Tech and SEPC go up and down completely randomly.
Pair Corralation between Garware Hi-Tech and SEPC
Assuming the 90 days trading horizon Garware Hi Tech Films is expected to generate 1.7 times more return on investment than SEPC. However, Garware Hi-Tech is 1.7 times more volatile than SEPC Limited. It trades about 0.09 of its potential returns per unit of risk. SEPC Limited is currently generating about -0.24 per unit of risk. If you would invest 391,205 in Garware Hi Tech Films on December 8, 2024 and sell it today you would earn a total of 30,200 from holding Garware Hi Tech Films or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garware Hi Tech Films vs. SEPC Limited
Performance |
| Timeline |
| Garware Hi Tech |
| SEPC Limited |
Garware Hi-Tech and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garware Hi-Tech and SEPC
The main advantage of trading using opposite Garware Hi-Tech and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garware Hi-Tech position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.| Garware Hi-Tech vs. Kamat Hotels Limited | ||
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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