Correlation Between State Trading and Golden Tobacco
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By analyzing existing cross correlation between The State Trading and Golden Tobacco Limited, you can compare the effects of market volatilities on State Trading and Golden Tobacco 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 State Trading with a short position of Golden Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Trading and Golden Tobacco.
Diversification Opportunities for State Trading and Golden Tobacco
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Golden is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The State Trading and Golden Tobacco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Tobacco and State Trading 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 The State Trading are associated (or correlated) with Golden Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Tobacco has no effect on the direction of State Trading i.e., State Trading and Golden Tobacco go up and down completely randomly.
Pair Corralation between State Trading and Golden Tobacco
Assuming the 90 days trading horizon The State Trading is expected to generate 1.46 times more return on investment than Golden Tobacco. However, State Trading is 1.46 times more volatile than Golden Tobacco Limited. It trades about 0.05 of its potential returns per unit of risk. Golden Tobacco Limited is currently generating about -0.02 per unit of risk. If you would invest 8,010 in The State Trading on October 27, 2024 and sell it today you would earn a total of 6,079 from holding The State Trading or generate 75.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
The State Trading vs. Golden Tobacco Limited
Performance |
| Timeline |
| State Trading |
| Golden Tobacco |
State Trading and Golden Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Trading and Golden Tobacco
The main advantage of trading using opposite State Trading and Golden Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Trading position performs unexpectedly, Golden Tobacco 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 Golden Tobacco will offset losses from the drop in Golden Tobacco's long position.| State Trading vs. ideaForge Technology Limited | State Trading vs. ILFS Investment Managers | State Trading vs. Compucom Software Limited | State Trading vs. LT Technology Services |
| Golden Tobacco vs. Consolidated Construction Consortium | Golden Tobacco vs. Biofil Chemicals Pharmaceuticals | Golden Tobacco vs. Refex Industries Limited | Golden Tobacco vs. Kingfa Science 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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