Correlation Between Taj GVK and SAL Steel
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By analyzing existing cross correlation between Taj GVK Hotels and SAL Steel Limited, you can compare the effects of market volatilities on Taj GVK and SAL Steel 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 SAL Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taj GVK and SAL Steel.
Diversification Opportunities for Taj GVK and SAL Steel
Very good diversification
The 3 months correlation between Taj and SAL is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Taj GVK Hotels and SAL Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAL Steel Limited 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 SAL Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAL Steel Limited has no effect on the direction of Taj GVK i.e., Taj GVK and SAL Steel go up and down completely randomly.
Pair Corralation between Taj GVK and SAL Steel
Assuming the 90 days trading horizon Taj GVK Hotels is expected to generate 0.92 times more return on investment than SAL Steel. However, Taj GVK Hotels is 1.09 times less risky than SAL Steel. It trades about 0.24 of its potential returns per unit of risk. SAL Steel Limited is currently generating about -0.04 per unit of risk. If you would invest 29,690 in Taj GVK Hotels on August 30, 2024 and sell it today you would earn a total of 4,210 from holding Taj GVK Hotels or generate 14.18% 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. SAL Steel Limited
Performance |
| Timeline |
| Taj GVK Hotels |
| SAL Steel Limited |
Taj GVK and SAL Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taj GVK and SAL Steel
The main advantage of trading using opposite Taj GVK and SAL Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taj GVK position performs unexpectedly, SAL Steel 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 SAL Steel will offset losses from the drop in SAL Steel's long position.| Taj GVK vs. Hemisphere Properties India | Taj GVK vs. India Glycols Limited | Taj GVK vs. Indo Borax Chemicals | Taj GVK 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 Stocks Directory module to find actively traded stocks across global markets.
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