Correlation Between Taj GVK and Sterling
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By analyzing existing cross correlation between Taj GVK Hotels and Sterling and Wilson, you can compare the effects of market volatilities on Taj GVK and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taj GVK and Sterling.
Diversification Opportunities for Taj GVK and Sterling
Good diversification
The 3 months correlation between Taj and Sterling is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Taj GVK Hotels and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of Taj GVK i.e., Taj GVK and Sterling go up and down completely randomly.
Pair Corralation between Taj GVK and Sterling
Assuming the 90 days trading horizon Taj GVK Hotels is expected to generate 0.97 times more return on investment than Sterling. However, Taj GVK Hotels is 1.04 times less risky than Sterling. It trades about 0.06 of its potential returns per unit of risk. Sterling and Wilson is currently generating about 0.02 per unit of risk. If you would invest 17,918 in Taj GVK Hotels on November 6, 2024 and sell it today you would earn a total of 17,247 from holding Taj GVK Hotels or generate 96.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Taj GVK Hotels vs. Sterling and Wilson
Performance |
| Timeline |
| Taj GVK Hotels |
| Sterling and Wilson |
Taj GVK and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taj GVK and Sterling
The main advantage of trading using opposite Taj GVK and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taj GVK position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| Taj GVK vs. The Indian Hotels | Taj GVK vs. Advani Hotels Resorts | Taj GVK vs. Chalet Hotels Limited | Taj GVK vs. Cartrade Tech Limited |
| Sterling vs. Dev Information Technology | Sterling vs. IOL Chemicals and | Sterling vs. Chambal Fertilizers Chemicals | Sterling vs. Mangalore Chemicals Fertilizers |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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