Correlation Between SBI Cards and Gujarat Fluorochemicals
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By analyzing existing cross correlation between SBI Cards and and Gujarat Fluorochemicals Limited, you can compare the effects of market volatilities on SBI Cards and Gujarat Fluorochemicals 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 SBI Cards with a short position of Gujarat Fluorochemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Cards and Gujarat Fluorochemicals.
Diversification Opportunities for SBI Cards and Gujarat Fluorochemicals
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SBI and Gujarat is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SBI Cards and and Gujarat Fluorochemicals Limite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Fluorochemicals and SBI Cards 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 SBI Cards and are associated (or correlated) with Gujarat Fluorochemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Fluorochemicals has no effect on the direction of SBI Cards i.e., SBI Cards and Gujarat Fluorochemicals go up and down completely randomly.
Pair Corralation between SBI Cards and Gujarat Fluorochemicals
Assuming the 90 days trading horizon SBI Cards and is expected to generate 0.51 times more return on investment than Gujarat Fluorochemicals. However, SBI Cards and is 1.96 times less risky than Gujarat Fluorochemicals. It trades about 0.33 of its potential returns per unit of risk. Gujarat Fluorochemicals Limited is currently generating about 0.13 per unit of risk. If you would invest 67,925 in SBI Cards and on September 13, 2024 and sell it today you would earn a total of 4,755 from holding SBI Cards and or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SBI Cards and vs. Gujarat Fluorochemicals Limite
Performance |
| Timeline |
| SBI Cards |
| Gujarat Fluorochemicals |
SBI Cards and Gujarat Fluorochemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Cards and Gujarat Fluorochemicals
The main advantage of trading using opposite SBI Cards and Gujarat Fluorochemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Cards position performs unexpectedly, Gujarat Fluorochemicals 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 Gujarat Fluorochemicals will offset losses from the drop in Gujarat Fluorochemicals' long position.| SBI Cards vs. Neogen Chemicals Limited | SBI Cards vs. Jindal Poly Investment | SBI Cards vs. Kavveri Telecom Products | SBI Cards vs. Nalwa Sons Investments |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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