Correlation Between POWERGRID Infrastructure and GPT Healthcare
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By analyzing existing cross correlation between POWERGRID Infrastructure Investment and GPT Healthcare, you can compare the effects of market volatilities on POWERGRID Infrastructure and GPT Healthcare 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 POWERGRID Infrastructure with a short position of GPT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and GPT Healthcare.
Diversification Opportunities for POWERGRID Infrastructure and GPT Healthcare
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POWERGRID and GPT is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves and GPT Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Healthcare and POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment are associated (or correlated) with GPT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Healthcare has no effect on the direction of POWERGRID Infrastructure i.e., POWERGRID Infrastructure and GPT Healthcare go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and GPT Healthcare
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to under-perform the GPT Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, POWERGRID Infrastructure Investment is 1.86 times less risky than GPT Healthcare. The stock trades about -0.25 of its potential returns per unit of risk. The GPT Healthcare is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 17,186 in GPT Healthcare on September 3, 2024 and sell it today you would earn a total of 705.00 from holding GPT Healthcare or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. GPT Healthcare
Performance |
| Timeline |
| POWERGRID Infrastructure |
| GPT Healthcare |
POWERGRID Infrastructure and GPT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and GPT Healthcare
The main advantage of trading using opposite POWERGRID Infrastructure and GPT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure position performs unexpectedly, GPT Healthcare 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 GPT Healthcare will offset losses from the drop in GPT Healthcare's long position.| POWERGRID Infrastructure vs. Vibhor Steel Tubes | POWERGRID Infrastructure vs. Zenith Steel Pipes | POWERGRID Infrastructure vs. Rama Steel Tubes | POWERGRID Infrastructure vs. Baazar Style Retail |
| GPT Healthcare vs. Baazar Style Retail | GPT Healthcare vs. Computer Age Management | GPT Healthcare vs. VIP Clothing Limited | GPT Healthcare vs. FCS Software Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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