Correlation Between V2 Retail and Great Eastern
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By analyzing existing cross correlation between V2 Retail Limited and The Great Eastern, you can compare the effects of market volatilities on V2 Retail 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 V2 Retail with a short position of Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2 Retail and Great Eastern.
Diversification Opportunities for V2 Retail and Great Eastern
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between V2RETAIL and Great is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding V2 Retail Limited and The Great Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Eastern and V2 Retail 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 V2 Retail Limited 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 V2 Retail i.e., V2 Retail and Great Eastern go up and down completely randomly.
Pair Corralation between V2 Retail and Great Eastern
Assuming the 90 days trading horizon V2 Retail Limited is expected to generate 1.3 times more return on investment than Great Eastern. However, V2 Retail is 1.3 times more volatile than The Great Eastern. It trades about 0.22 of its potential returns per unit of risk. The Great Eastern is currently generating about 0.06 per unit of risk. If you would invest 8,990 in V2 Retail Limited on November 2, 2024 and sell it today you would earn a total of 178,635 from holding V2 Retail Limited or generate 1987.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
V2 Retail Limited vs. The Great Eastern
Performance |
| Timeline |
| V2 Retail Limited |
| Great Eastern |
V2 Retail and Great Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V2 Retail and Great Eastern
The main advantage of trading using opposite V2 Retail and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2 Retail 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.| V2 Retail vs. Arman Financial Services | V2 Retail vs. Music Broadcast Limited | V2 Retail vs. Kewal Kiran Clothing | V2 Retail vs. UCO Bank |
| Great Eastern vs. Sarveshwar Foods Limited | Great Eastern vs. Ratnamani Metals Tubes | Great Eastern vs. Apex Frozen Foods | Great Eastern vs. Industrial Investment Trust |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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