Correlation Between GTL and HDFC Nifty
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By analyzing existing cross correlation between GTL Limited and HDFC Nifty Smallcap, you can compare the effects of market volatilities on GTL and HDFC Nifty 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 GTL with a short position of HDFC Nifty. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and HDFC Nifty.
Diversification Opportunities for GTL and HDFC Nifty
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GTL and HDFC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and HDFC Nifty Smallcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HDFC Nifty Smallcap and GTL 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 GTL Limited are associated (or correlated) with HDFC Nifty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HDFC Nifty Smallcap has no effect on the direction of GTL i.e., GTL and HDFC Nifty go up and down completely randomly.
Pair Corralation between GTL and HDFC Nifty
Assuming the 90 days trading horizon GTL Limited is expected to generate 3.41 times more return on investment than HDFC Nifty. However, GTL is 3.41 times more volatile than HDFC Nifty Smallcap. It trades about 0.14 of its potential returns per unit of risk. HDFC Nifty Smallcap is currently generating about 0.24 per unit of risk. If you would invest 1,267 in GTL Limited on September 12, 2024 and sell it today you would earn a total of 122.00 from holding GTL Limited or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTL Limited vs. HDFC Nifty Smallcap
Performance |
| Timeline |
| GTL Limited |
| HDFC Nifty Smallcap |
GTL and HDFC Nifty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and HDFC Nifty
The main advantage of trading using opposite GTL and HDFC Nifty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL position performs unexpectedly, HDFC Nifty 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 HDFC Nifty will offset losses from the drop in HDFC Nifty's long position.| GTL vs. Transport of | GTL vs. Reliance Industrial Infrastructure | GTL vs. Metalyst Forgings Limited | GTL vs. Hilton Metal Forging |
| HDFC Nifty vs. SBI Mutual Fund | HDFC Nifty vs. Kingfa Science Technology | HDFC Nifty vs. GTL Limited | HDFC Nifty vs. Agro Phos India |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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