Correlation Between Southern Petrochemicals and Bajaj Healthcare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southern Petrochemicals Industries and Bajaj Healthcare Limited, you can compare the effects of market volatilities on Southern Petrochemicals 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 Southern Petrochemicals with a short position of Bajaj Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Petrochemicals and Bajaj Healthcare.
Diversification Opportunities for Southern Petrochemicals and Bajaj Healthcare
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southern and Bajaj is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Southern Petrochemicals Indust and Bajaj Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Healthcare and Southern Petrochemicals 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 Southern Petrochemicals Industries 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 Southern Petrochemicals i.e., Southern Petrochemicals and Bajaj Healthcare go up and down completely randomly.
Pair Corralation between Southern Petrochemicals and Bajaj Healthcare
Assuming the 90 days trading horizon Southern Petrochemicals is expected to generate 5.45 times less return on investment than Bajaj Healthcare. But when comparing it to its historical volatility, Southern Petrochemicals Industries is 2.43 times less risky than Bajaj Healthcare. It trades about 0.06 of its potential returns per unit of risk. Bajaj Healthcare Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 57,265 in Bajaj Healthcare Limited on November 5, 2024 and sell it today you would earn a total of 9,770 from holding Bajaj Healthcare Limited or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern Petrochemicals Indust vs. Bajaj Healthcare Limited
Performance |
| Timeline |
| Southern Petrochemicals |
| Bajaj Healthcare |
Southern Petrochemicals and Bajaj Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Petrochemicals and Bajaj Healthcare
The main advantage of trading using opposite Southern Petrochemicals and Bajaj Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Petrochemicals 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.The idea behind Southern Petrochemicals Industries and Bajaj Healthcare Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Bajaj Healthcare vs. Diligent Media | Bajaj Healthcare vs. Akme Fintrade India | Bajaj Healthcare vs. Cyber Media Research | Bajaj Healthcare vs. United Breweries 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |