Correlation Between Taj GVK and Bank of Maharashtra
Specify exactly 2 symbols:
By analyzing existing cross correlation between Taj GVK Hotels and Bank of Maharashtra, you can compare the effects of market volatilities on Taj GVK and Bank of Maharashtra 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 Bank of Maharashtra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taj GVK and Bank of Maharashtra.
Diversification Opportunities for Taj GVK and Bank of Maharashtra
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Taj and Bank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Taj GVK Hotels and Bank of Maharashtra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Maharashtra 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 Bank of Maharashtra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Maharashtra has no effect on the direction of Taj GVK i.e., Taj GVK and Bank of Maharashtra go up and down completely randomly.
Pair Corralation between Taj GVK and Bank of Maharashtra
Assuming the 90 days trading horizon Taj GVK Hotels is expected to generate 1.44 times more return on investment than Bank of Maharashtra. However, Taj GVK is 1.44 times more volatile than Bank of Maharashtra. It trades about 0.03 of its potential returns per unit of risk. Bank of Maharashtra is currently generating about 0.04 per unit of risk. If you would invest 42,400 in Taj GVK Hotels on November 9, 2024 and sell it today you would earn a total of 340.00 from holding Taj GVK Hotels or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taj GVK Hotels vs. Bank of Maharashtra
Performance |
| Timeline |
| Taj GVK Hotels |
| Bank of Maharashtra |
Taj GVK and Bank of Maharashtra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taj GVK and Bank of Maharashtra
The main advantage of trading using opposite Taj GVK and Bank of Maharashtra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taj GVK position performs unexpectedly, Bank of Maharashtra 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 Bank of Maharashtra will offset losses from the drop in Bank of Maharashtra's long position.| Taj GVK vs. Sasken Technologies Limited | Taj GVK vs. Yatra Online Limited | Taj GVK vs. Newgen Software Technologies | Taj GVK vs. 63 moons technologies |
| Bank of Maharashtra vs. Pritish Nandy Communications | Bank of Maharashtra vs. Nalwa Sons Investments | Bank of Maharashtra vs. Network18 Media Investments | Bank of Maharashtra vs. Jindal Poly Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |