Correlation Between Spencers Retail and Bajaj Holdings
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By analyzing existing cross correlation between Spencers Retail Limited and Bajaj Holdings Investment, you can compare the effects of market volatilities on Spencers Retail and Bajaj Holdings 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 Spencers Retail with a short position of Bajaj Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Bajaj Holdings.
Diversification Opportunities for Spencers Retail and Bajaj Holdings
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Spencers and Bajaj is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and Bajaj Holdings Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Holdings Investment and Spencers Retail 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 Spencers Retail Limited are associated (or correlated) with Bajaj Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Holdings Investment has no effect on the direction of Spencers Retail i.e., Spencers Retail and Bajaj Holdings go up and down completely randomly.
Pair Corralation between Spencers Retail and Bajaj Holdings
Assuming the 90 days trading horizon Spencers Retail is expected to generate 3.32 times less return on investment than Bajaj Holdings. In addition to that, Spencers Retail is 1.77 times more volatile than Bajaj Holdings Investment. It trades about 0.02 of its total potential returns per unit of risk. Bajaj Holdings Investment is currently generating about 0.14 per unit of volatility. If you would invest 797,206 in Bajaj Holdings Investment on September 3, 2024 and sell it today you would earn a total of 249,619 from holding Bajaj Holdings Investment or generate 31.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Spencers Retail Limited vs. Bajaj Holdings Investment
Performance |
| Timeline |
| Spencers Retail |
| Bajaj Holdings Investment |
Spencers Retail and Bajaj Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Bajaj Holdings
The main advantage of trading using opposite Spencers Retail and Bajaj Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, Bajaj Holdings 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 Holdings will offset losses from the drop in Bajaj Holdings' long position.| Spencers Retail vs. Bajaj Holdings Investment | Spencers Retail vs. Shipping | Spencers Retail vs. Indo Borax Chemicals | Spencers Retail vs. Kingfa Science Technology |
| Bajaj Holdings vs. The Investment Trust | Bajaj Holdings vs. Hathway Cable Datacom | Bajaj Holdings vs. Kalyani Investment | Bajaj Holdings vs. Industrial Investment Trust |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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