Correlation Between Rajnandini Metal and GTL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rajnandini Metal Limited and GTL Limited, you can compare the effects of market volatilities on Rajnandini Metal 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 Rajnandini Metal with a short position of GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajnandini Metal and GTL.
Diversification Opportunities for Rajnandini Metal and GTL
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rajnandini and GTL is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Rajnandini Metal Limited and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL Limited and Rajnandini Metal 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 Rajnandini Metal Limited 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 Rajnandini Metal i.e., Rajnandini Metal and GTL go up and down completely randomly.
Pair Corralation between Rajnandini Metal and GTL
Assuming the 90 days trading horizon Rajnandini Metal Limited is expected to under-perform the GTL. But the stock apears to be less risky and, when comparing its historical volatility, Rajnandini Metal Limited is 1.21 times less risky than GTL. The stock trades about -0.03 of its potential returns per unit of risk. The GTL Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 900.00 in GTL Limited on December 3, 2024 and sell it today you would lose (87.00) from holding GTL Limited or give up 9.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rajnandini Metal Limited vs. GTL Limited
Performance |
| Timeline |
| Rajnandini Metal |
| GTL Limited |
Rajnandini Metal and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajnandini Metal and GTL
The main advantage of trading using opposite Rajnandini Metal and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajnandini Metal 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.| Rajnandini Metal vs. Touchwood Entertainment Limited | Rajnandini Metal vs. ILFS Investment Managers | Rajnandini Metal vs. Industrial Investment Trust | Rajnandini Metal vs. Infomedia Press Limited |
| GTL vs. Shyam Telecom Limited | GTL vs. Ortel Communications Limited | GTL vs. Tamilnadu Telecommunication Limited | GTL vs. Reliance Communications Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |