Correlation Between Taj GVK and Great Eastern
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By analyzing existing cross correlation between Taj GVK Hotels and The Great Eastern, you can compare the effects of market volatilities on Taj GVK and Great Eastern 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 Taj GVK with a short position of Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taj GVK and Great Eastern.
Diversification Opportunities for Taj GVK and Great Eastern
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Taj and Great is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Taj GVK Hotels and The Great Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Eastern and Taj GVK 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 Taj GVK Hotels are associated (or correlated) with Great Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Eastern has no effect on the direction of Taj GVK i.e., Taj GVK and Great Eastern go up and down completely randomly.
Pair Corralation between Taj GVK and Great Eastern
Assuming the 90 days trading horizon Taj GVK is expected to generate 1.13 times less return on investment than Great Eastern. In addition to that, Taj GVK is 1.16 times more volatile than The Great Eastern. It trades about 0.05 of its total potential returns per unit of risk. The Great Eastern is currently generating about 0.06 per unit of volatility. If you would invest 73,736 in The Great Eastern on September 12, 2024 and sell it today you would earn a total of 34,164 from holding The Great Eastern or generate 46.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taj GVK Hotels vs. The Great Eastern
Performance |
| Timeline |
| Taj GVK Hotels |
| Great Eastern |
Taj GVK and Great Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taj GVK and Great Eastern
The main advantage of trading using opposite Taj GVK and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taj GVK position performs unexpectedly, Great Eastern 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 Great Eastern will offset losses from the drop in Great Eastern's long position.| Taj GVK vs. Hemisphere Properties India | Taj GVK vs. Indo Borax Chemicals | Taj GVK vs. Kingfa Science Technology | Taj GVK vs. Alkali Metals Limited |
| Great Eastern vs. Max Financial Services | Great Eastern vs. 21st Century Management | Great Eastern vs. Kewal Kiran Clothing | Great Eastern vs. The Federal Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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