Correlation Between Silver Touch and Bosch
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By analyzing existing cross correlation between Silver Touch Technologies and Bosch Limited, you can compare the effects of market volatilities on Silver Touch and Bosch 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 Silver Touch with a short position of Bosch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Touch and Bosch.
Diversification Opportunities for Silver Touch and Bosch
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Silver and Bosch is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Silver Touch Technologies and Bosch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Limited and Silver Touch 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 Silver Touch Technologies are associated (or correlated) with Bosch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Limited has no effect on the direction of Silver Touch i.e., Silver Touch and Bosch go up and down completely randomly.
Pair Corralation between Silver Touch and Bosch
Assuming the 90 days trading horizon Silver Touch Technologies is expected to generate 1.12 times more return on investment than Bosch. However, Silver Touch is 1.12 times more volatile than Bosch Limited. It trades about -0.07 of its potential returns per unit of risk. Bosch Limited is currently generating about -0.18 per unit of risk. If you would invest 71,880 in Silver Touch Technologies on October 26, 2024 and sell it today you would lose (4,900) from holding Silver Touch Technologies or give up 6.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Touch Technologies vs. Bosch Limited
Performance |
| Timeline |
| Silver Touch Technologies |
| Bosch Limited |
Silver Touch and Bosch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Touch and Bosch
The main advantage of trading using opposite Silver Touch and Bosch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Touch position performs unexpectedly, Bosch 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 Bosch will offset losses from the drop in Bosch's long position.| Silver Touch vs. FCS Software Solutions | Silver Touch vs. Network18 Media Investments | Silver Touch vs. Kingfa Science Technology | Silver Touch vs. Selan Exploration Technology |
| Bosch vs. Manaksia Steels Limited | Bosch vs. JSW Steel Limited | Bosch vs. Silver Touch Technologies | Bosch vs. BF Utilities 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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