Correlation Between Parag Milk and GTL
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By analyzing existing cross correlation between Parag Milk Foods and GTL Limited, you can compare the effects of market volatilities on Parag Milk and GTL 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 Parag Milk with a short position of GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parag Milk and GTL.
Diversification Opportunities for Parag Milk and GTL
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Parag and GTL is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Parag Milk Foods and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL Limited and Parag Milk 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 Parag Milk Foods are associated (or correlated) with GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of Parag Milk i.e., Parag Milk and GTL go up and down completely randomly.
Pair Corralation between Parag Milk and GTL
Assuming the 90 days trading horizon Parag Milk Foods is expected to generate 1.14 times more return on investment than GTL. However, Parag Milk is 1.14 times more volatile than GTL Limited. It trades about 0.0 of its potential returns per unit of risk. GTL Limited is currently generating about -0.31 per unit of risk. If you would invest 15,479 in Parag Milk Foods on November 29, 2024 and sell it today you would lose (95.00) from holding Parag Milk Foods or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Parag Milk Foods vs. GTL Limited
Performance |
| Timeline |
| Parag Milk Foods |
| GTL Limited |
Parag Milk and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parag Milk and GTL
The main advantage of trading using opposite Parag Milk and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parag Milk position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL's long position.| Parag Milk vs. Embassy Office Parks | Parag Milk vs. Electrosteel Castings Limited | Parag Milk vs. Manaksia Steels Limited | Parag Milk vs. Prakash Steelage Limited |
| GTL vs. Cambridge Technology Enterprises | GTL vs. LT Technology Services | GTL vs. FCS Software Solutions | GTL vs. Consolidated Construction Consortium |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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