Correlation Between Baazar Style and Trent
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baazar Style Retail and Trent Limited, you can compare the effects of market volatilities on Baazar Style and Trent 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 Baazar Style with a short position of Trent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and Trent.
Diversification Opportunities for Baazar Style and Trent
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baazar and Trent is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail and Trent Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trent Limited and Baazar Style 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 Baazar Style Retail are associated (or correlated) with Trent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trent Limited has no effect on the direction of Baazar Style i.e., Baazar Style and Trent go up and down completely randomly.
Pair Corralation between Baazar Style and Trent
Assuming the 90 days trading horizon Baazar Style Retail is expected to under-perform the Trent. In addition to that, Baazar Style is 1.68 times more volatile than Trent Limited. It trades about -0.18 of its total potential returns per unit of risk. Trent Limited is currently generating about -0.16 per unit of volatility. If you would invest 551,120 in Trent Limited on December 1, 2024 and sell it today you would lose (65,965) from holding Trent Limited or give up 11.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baazar Style Retail vs. Trent Limited
Performance |
| Timeline |
| Baazar Style Retail |
| Trent Limited |
Baazar Style and Trent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baazar Style and Trent
The main advantage of trading using opposite Baazar Style and Trent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baazar Style position performs unexpectedly, Trent 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 Trent will offset losses from the drop in Trent's long position.| Baazar Style vs. Apollo Sindoori Hotels | Baazar Style vs. Hisar Metal Industries | Baazar Style vs. Blue Coast Hotels | Baazar Style vs. LLOYDS METALS AND |
| Trent vs. Elgi Rubber | Trent vs. Tata Communications Limited | Trent vs. Kavveri Telecom Products | Trent vs. Can Fin Homes |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |