Correlation Between G Tec and GTL
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By analyzing existing cross correlation between G Tec Jainx Education and GTL Limited, you can compare the effects of market volatilities on G Tec and GTL 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 G Tec with a short position of GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Tec and GTL.
Diversification Opportunities for G Tec and GTL
Poor diversification
The 3 months correlation between GTECJAINX and GTL is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding G Tec Jainx Education and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL Limited and G Tec 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 G Tec Jainx Education are associated (or correlated) with GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of G Tec i.e., G Tec and GTL go up and down completely randomly.
Pair Corralation between G Tec and GTL
Assuming the 90 days trading horizon G Tec Jainx Education is expected to generate 0.46 times more return on investment than GTL. However, G Tec Jainx Education is 2.2 times less risky than GTL. It trades about -0.59 of its potential returns per unit of risk. GTL Limited is currently generating about -0.32 per unit of risk. If you would invest 3,550 in G Tec Jainx Education on November 28, 2024 and sell it today you would lose (461.00) from holding G Tec Jainx Education or give up 12.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Tec Jainx Education vs. GTL Limited
Performance |
| Timeline |
| G Tec Jainx |
| GTL Limited |
G Tec and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Tec and GTL
The main advantage of trading using opposite G Tec and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Tec position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL's long position.| G Tec vs. UTI Asset Management | G Tec vs. Chemcon Speciality Chemicals | G Tec vs. Vishnu Chemicals Limited | G Tec vs. HDFC Life Insurance |
| GTL vs. Indo Rama Synthetics | GTL vs. Zuari Agro Chemicals | GTL vs. Goldstone Technologies Limited | GTL vs. Transport of |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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