Correlation Between Premier Polyfilm and Gokul Refoils
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By analyzing existing cross correlation between Premier Polyfilm Limited and Gokul Refoils and, you can compare the effects of market volatilities on Premier Polyfilm and Gokul Refoils 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 Premier Polyfilm with a short position of Gokul Refoils. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Polyfilm and Gokul Refoils.
Diversification Opportunities for Premier Polyfilm and Gokul Refoils
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Premier and Gokul is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Premier Polyfilm Limited and Gokul Refoils and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gokul Refoils and Premier Polyfilm 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 Premier Polyfilm Limited are associated (or correlated) with Gokul Refoils. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gokul Refoils has no effect on the direction of Premier Polyfilm i.e., Premier Polyfilm and Gokul Refoils go up and down completely randomly.
Pair Corralation between Premier Polyfilm and Gokul Refoils
Assuming the 90 days trading horizon Premier Polyfilm Limited is expected to generate 2.41 times more return on investment than Gokul Refoils. However, Premier Polyfilm is 2.41 times more volatile than Gokul Refoils and. It trades about 0.32 of its potential returns per unit of risk. Gokul Refoils and is currently generating about 0.06 per unit of risk. If you would invest 6,221 in Premier Polyfilm Limited on October 11, 2024 and sell it today you would earn a total of 1,632 from holding Premier Polyfilm Limited or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Polyfilm Limited vs. Gokul Refoils and
Performance |
| Timeline |
| Premier Polyfilm |
| Gokul Refoils |
Premier Polyfilm and Gokul Refoils Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Polyfilm and Gokul Refoils
The main advantage of trading using opposite Premier Polyfilm and Gokul Refoils positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Polyfilm position performs unexpectedly, Gokul Refoils 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 Gokul Refoils will offset losses from the drop in Gokul Refoils' long position.| Premier Polyfilm vs. Gokul Refoils and | Premier Polyfilm vs. Hilton Metal Forging | Premier Polyfilm vs. Shyam Metalics and | Premier Polyfilm vs. Bajaj Holdings Investment |
| Gokul Refoils vs. Mangalore Chemicals Fertilizers | Gokul Refoils vs. DMCC SPECIALITY CHEMICALS | Gokul Refoils vs. VA Tech Wabag | Gokul Refoils vs. Chembond Chemicals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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