Correlation Between Gujarat Raffia and Selan Exploration
Specify exactly 2 symbols:
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
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gujarat and Selan is 0.73. 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. But the stock apears to be less risky and, when comparing its historical volatility, Gujarat Raffia Industries is 1.39 times less risky than Selan Exploration. The stock trades about -0.06 of its potential returns per unit of risk. The Selan Exploration Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 89,740 in Selan Exploration Technology on September 2, 2024 and sell it today you would lose (1,480) from holding Selan Exploration Technology or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| 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. Shree Pushkar Chemicals | Gujarat Raffia vs. Samhi Hotels Limited | Gujarat Raffia vs. Royal Orchid Hotels | Gujarat Raffia vs. Chalet Hotels Limited |
| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. Kingfa Science Technology | Selan Exploration vs. Rico Auto Industries |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |