Correlation Between Gujarat Raffia and Selan Exploration
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By analyzing existing cross correlation between Gujarat Raffia Industries and Selan Exploration Technology, you can compare the effects of market volatilities on Gujarat Raffia and Selan Exploration 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 Gujarat Raffia with a short position of Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Raffia and Selan Exploration.
Diversification Opportunities for Gujarat Raffia and Selan Exploration
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gujarat and Selan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Raffia Industries and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration and Gujarat Raffia 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 Gujarat Raffia Industries are associated (or correlated) with Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Gujarat Raffia i.e., Gujarat Raffia and Selan Exploration go up and down completely randomly.
Pair Corralation between Gujarat Raffia and Selan Exploration
Assuming the 90 days trading horizon Gujarat Raffia Industries is expected to under-perform the Selan Exploration. In addition to that, Gujarat Raffia is 1.18 times more volatile than Selan Exploration Technology. It trades about -0.14 of its total potential returns per unit of risk. Selan Exploration Technology is currently generating about 0.01 per unit of volatility. If you would invest 82,035 in Selan Exploration Technology on October 22, 2024 and sell it today you would earn a total of 75.00 from holding Selan Exploration Technology or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gujarat Raffia Industries vs. Selan Exploration Technology
Performance |
| Timeline |
| Gujarat Raffia Industries |
| Selan Exploration |
Gujarat Raffia and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gujarat Raffia and Selan Exploration
The main advantage of trading using opposite Gujarat Raffia and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Raffia position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Gujarat Raffia vs. Reliance Home Finance | Gujarat Raffia vs. Can Fin Homes | Gujarat Raffia vs. Bigbloc Construction Limited | Gujarat Raffia vs. Usha Martin Education |
| Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. Kingfa Science Technology | Selan Exploration vs. Indo Amines Limited | Selan Exploration vs. HDFC Mutual Fund |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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