Correlation Between MIRC Electronics and Bajaj Holdings
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By analyzing existing cross correlation between MIRC Electronics Limited and Bajaj Holdings Investment, you can compare the effects of market volatilities on MIRC Electronics 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 MIRC Electronics with a short position of Bajaj Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRC Electronics and Bajaj Holdings.
Diversification Opportunities for MIRC Electronics and Bajaj Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRC and Bajaj is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MIRC Electronics 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 MIRC Electronics 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 MIRC Electronics 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 MIRC Electronics i.e., MIRC Electronics and Bajaj Holdings go up and down completely randomly.
Pair Corralation between MIRC Electronics and Bajaj Holdings
Assuming the 90 days trading horizon MIRC Electronics Limited is expected to generate 2.25 times more return on investment than Bajaj Holdings. However, MIRC Electronics is 2.25 times more volatile than Bajaj Holdings Investment. It trades about 0.03 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 1,535 in MIRC Electronics Limited on September 3, 2024 and sell it today you would earn a total of 534.00 from holding MIRC Electronics Limited or generate 34.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
MIRC Electronics Limited vs. Bajaj Holdings Investment
Performance |
| Timeline |
| MIRC Electronics |
| Bajaj Holdings Investment |
MIRC Electronics and Bajaj Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRC Electronics and Bajaj Holdings
The main advantage of trading using opposite MIRC Electronics and Bajaj Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRC Electronics 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.| MIRC Electronics vs. Bajaj Holdings Investment | MIRC Electronics vs. Shipping | MIRC Electronics vs. Indo Borax Chemicals | MIRC Electronics vs. Kingfa Science Technology |
| Bajaj Holdings vs. The Investment Trust | Bajaj Holdings vs. Hathway Cable Datacom | Bajaj Holdings vs. Kalyani Investment | Bajaj Holdings vs. Industrial Investment Trust |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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