Correlation Between Trent and Baazar Style
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By analyzing existing cross correlation between Trent Limited and Baazar Style Retail, you can compare the effects of market volatilities on Trent and Baazar Style 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 Trent with a short position of Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trent and Baazar Style.
Diversification Opportunities for Trent and Baazar Style
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trent and Baazar is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Trent Limited and Baazar Style Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baazar Style Retail and Trent 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 Trent Limited are associated (or correlated) with Baazar Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baazar Style Retail has no effect on the direction of Trent i.e., Trent and Baazar Style go up and down completely randomly.
Pair Corralation between Trent and Baazar Style
Assuming the 90 days trading horizon Trent Limited is expected to under-perform the Baazar Style. But the stock apears to be less risky and, when comparing its historical volatility, Trent Limited is 1.43 times less risky than Baazar Style. The stock trades about -0.18 of its potential returns per unit of risk. The Baazar Style Retail is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 33,965 in Baazar Style Retail on October 26, 2024 and sell it today you would lose (1,825) from holding Baazar Style Retail or give up 5.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Trent Limited vs. Baazar Style Retail
Performance |
| Timeline |
| Trent Limited |
| Baazar Style Retail |
Trent and Baazar Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trent and Baazar Style
The main advantage of trading using opposite Trent and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trent position performs unexpectedly, Baazar Style 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 Baazar Style will offset losses from the drop in Baazar Style's long position.| Trent vs. NMDC Steel Limited | Trent vs. V2 Retail Limited | Trent vs. Styrenix Performance Materials | Trent vs. Cantabil Retail India |
| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Taj GVK Hotels |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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