Correlation Between Salzer Electronics and GPT Healthcare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Salzer Electronics Limited and GPT Healthcare, you can compare the effects of market volatilities on Salzer Electronics 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 Salzer Electronics with a short position of GPT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and GPT Healthcare.
Diversification Opportunities for Salzer Electronics and GPT Healthcare
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salzer and GPT is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and GPT Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Healthcare and Salzer 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 Salzer Electronics Limited 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 Salzer Electronics i.e., Salzer Electronics and GPT Healthcare go up and down completely randomly.
Pair Corralation between Salzer Electronics and GPT Healthcare
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 2.08 times more return on investment than GPT Healthcare. However, Salzer Electronics is 2.08 times more volatile than GPT Healthcare. It trades about 0.12 of its potential returns per unit of risk. GPT Healthcare is currently generating about -0.12 per unit of risk. If you would invest 111,790 in Salzer Electronics Limited on October 30, 2024 and sell it today you would earn a total of 20,280 from holding Salzer Electronics Limited or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salzer Electronics Limited vs. GPT Healthcare
Performance |
| Timeline |
| Salzer Electronics |
| GPT Healthcare |
Salzer Electronics and GPT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and GPT Healthcare
The main advantage of trading using opposite Salzer Electronics and GPT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics 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.| Salzer Electronics vs. WESTLIFE FOODWORLD LIMITED | Salzer Electronics vs. Compucom Software Limited | Salzer Electronics vs. Laxmi Organic Industries | Salzer Electronics vs. Ami Organics Limited |
| GPT Healthcare vs. Tainwala Chemical and | GPT Healthcare vs. Dharani SugarsChemicals Limited | GPT Healthcare vs. JB Chemicals Pharmaceuticals | GPT Healthcare vs. Khaitan Chemicals Fertilizers |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |