Correlation Between Indraprastha Medical and Golden Tobacco
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By analyzing existing cross correlation between Indraprastha Medical and Golden Tobacco Limited, you can compare the effects of market volatilities on Indraprastha Medical and Golden Tobacco 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 Indraprastha Medical with a short position of Golden Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indraprastha Medical and Golden Tobacco.
Diversification Opportunities for Indraprastha Medical and Golden Tobacco
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indraprastha and Golden is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Indraprastha Medical and Golden Tobacco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Tobacco and Indraprastha Medical 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 Indraprastha Medical are associated (or correlated) with Golden Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Tobacco has no effect on the direction of Indraprastha Medical i.e., Indraprastha Medical and Golden Tobacco go up and down completely randomly.
Pair Corralation between Indraprastha Medical and Golden Tobacco
Assuming the 90 days trading horizon Indraprastha Medical is expected to generate 1.15 times more return on investment than Golden Tobacco. However, Indraprastha Medical is 1.15 times more volatile than Golden Tobacco Limited. It trades about 0.28 of its potential returns per unit of risk. Golden Tobacco Limited is currently generating about 0.24 per unit of risk. If you would invest 43,270 in Indraprastha Medical on September 13, 2024 and sell it today you would earn a total of 6,150 from holding Indraprastha Medical or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indraprastha Medical vs. Golden Tobacco Limited
Performance |
| Timeline |
| Indraprastha Medical |
| Golden Tobacco |
Indraprastha Medical and Golden Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indraprastha Medical and Golden Tobacco
The main advantage of trading using opposite Indraprastha Medical and Golden Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indraprastha Medical position performs unexpectedly, Golden Tobacco 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 Golden Tobacco will offset losses from the drop in Golden Tobacco's long position.| Indraprastha Medical vs. Medplus Health Services | Indraprastha Medical vs. Compucom Software Limited | Indraprastha Medical vs. Zota Health Care | Indraprastha Medical vs. Global Health Limited |
| Golden Tobacco vs. Network18 Media Investments | Golden Tobacco vs. Tata Investment | Golden Tobacco vs. VIP Clothing Limited | Golden Tobacco vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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