Correlation Between Global Health and Bajaj Holdings
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By analyzing existing cross correlation between Global Health Limited and Bajaj Holdings Investment, you can compare the effects of market volatilities on Global Health and Bajaj Holdings 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 Global Health with a short position of Bajaj Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Bajaj Holdings.
Diversification Opportunities for Global Health and Bajaj Holdings
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Bajaj is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Global Health Limited and Bajaj Holdings Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Holdings Investment and Global Health 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 Global Health Limited are associated (or correlated) with Bajaj Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Holdings Investment has no effect on the direction of Global Health i.e., Global Health and Bajaj Holdings go up and down completely randomly.
Pair Corralation between Global Health and Bajaj Holdings
Assuming the 90 days trading horizon Global Health Limited is expected to generate 1.08 times more return on investment than Bajaj Holdings. However, Global Health is 1.08 times more volatile than Bajaj Holdings Investment. It trades about 0.09 of its potential returns per unit of risk. Bajaj Holdings Investment is currently generating about 0.07 per unit of risk. If you would invest 52,560 in Global Health Limited on January 26, 2025 and sell it today you would earn a total of 68,950 from holding Global Health Limited or generate 131.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Global Health Limited vs. Bajaj Holdings Investment
Performance |
| Timeline |
| Global Health Limited |
| Bajaj Holdings Investment |
Global Health and Bajaj Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Bajaj Holdings
The main advantage of trading using opposite Global Health and Bajaj Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, Bajaj Holdings 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 Bajaj Holdings will offset losses from the drop in Bajaj Holdings' long position.| Global Health vs. Fortis Healthcare Limited | Global Health vs. Lotus Eye Hospital | Global Health vs. Silgo Retail Limited | Global Health vs. Ventive Hospitality |
| Bajaj Holdings vs. BF Utilities Limited | Bajaj Holdings vs. AXISCADES Technologies Limited | Bajaj Holdings vs. GM Breweries Limited | Bajaj Holdings vs. Praxis Home Retail |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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