Correlation Between Selan Exploration and Baazar Style
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By analyzing existing cross correlation between Selan Exploration Technology and Baazar Style Retail, you can compare the effects of market volatilities on Selan Exploration and Baazar Style 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 Selan Exploration with a short position of Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selan Exploration and Baazar Style.
Diversification Opportunities for Selan Exploration and Baazar Style
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Selan and Baazar is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Selan Exploration Technology and Baazar Style Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baazar Style Retail and Selan Exploration 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 Selan Exploration Technology are associated (or correlated) with Baazar Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baazar Style Retail has no effect on the direction of Selan Exploration i.e., Selan Exploration and Baazar Style go up and down completely randomly.
Pair Corralation between Selan Exploration and Baazar Style
Assuming the 90 days trading horizon Selan Exploration Technology is expected to generate 0.76 times more return on investment than Baazar Style. However, Selan Exploration Technology is 1.31 times less risky than Baazar Style. It trades about -0.23 of its potential returns per unit of risk. Baazar Style Retail is currently generating about -0.25 per unit of risk. If you would invest 88,270 in Selan Exploration Technology on October 17, 2024 and sell it today you would lose (10,155) from holding Selan Exploration Technology or give up 11.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selan Exploration Technology vs. Baazar Style Retail
Performance |
| Timeline |
| Selan Exploration |
| Baazar Style Retail |
Selan Exploration and Baazar Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selan Exploration and Baazar Style
The main advantage of trading using opposite Selan Exploration and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selan Exploration position performs unexpectedly, Baazar Style 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 Baazar Style will offset losses from the drop in Baazar Style's long position.| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. Waaree Energies Limited | Selan Exploration vs. Datamatics Global Services |
| Baazar Style vs. Jaypee Infratech Limited | Baazar Style vs. Hindcon Chemicals Limited | Baazar Style vs. Mangalore Chemicals Fertilizers | Baazar Style vs. Selan Exploration Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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