Correlation Between SANOFI S and Bajaj Healthcare
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By analyzing existing cross correlation between SANOFI S HEALTHC and Bajaj Healthcare Limited, you can compare the effects of market volatilities on SANOFI S and Bajaj 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 SANOFI S with a short position of Bajaj Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOFI S and Bajaj Healthcare.
Diversification Opportunities for SANOFI S and Bajaj Healthcare
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SANOFI and Bajaj is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SANOFI S HEALTHC and Bajaj Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Healthcare and SANOFI S 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 SANOFI S HEALTHC are associated (or correlated) with Bajaj Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Healthcare has no effect on the direction of SANOFI S i.e., SANOFI S and Bajaj Healthcare go up and down completely randomly.
Pair Corralation between SANOFI S and Bajaj Healthcare
Assuming the 90 days trading horizon SANOFI S HEALTHC is expected to under-perform the Bajaj Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, SANOFI S HEALTHC is 1.46 times less risky than Bajaj Healthcare. The stock trades about -0.02 of its potential returns per unit of risk. The Bajaj Healthcare Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 43,216 in Bajaj Healthcare Limited on August 24, 2024 and sell it today you would lose (4,066) from holding Bajaj Healthcare Limited or give up 9.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 10.04% |
| Values | Daily Returns |
SANOFI S HEALTHC vs. Bajaj Healthcare Limited
Performance |
| Timeline |
| SANOFI S HEALTHC |
| Bajaj Healthcare |
SANOFI S and Bajaj Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOFI S and Bajaj Healthcare
The main advantage of trading using opposite SANOFI S and Bajaj Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOFI S position performs unexpectedly, Bajaj 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 Bajaj Healthcare will offset losses from the drop in Bajaj Healthcare's long position.| SANOFI S vs. Divis Laboratories Limited | SANOFI S vs. Indo Borax Chemicals | SANOFI S vs. Kingfa Science Technology | SANOFI S vs. Alkali Metals Limited |
| Bajaj Healthcare vs. Dev Information Technology | Bajaj Healthcare vs. FCS Software Solutions | Bajaj Healthcare vs. Newgen Software Technologies | Bajaj Healthcare vs. EMBASSY OFFICE PARKS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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