Correlation Between V2 Retail and India Glycols
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By analyzing existing cross correlation between V2 Retail Limited and India Glycols Limited, you can compare the effects of market volatilities on V2 Retail and India Glycols 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 India Glycols. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2 Retail and India Glycols.
Diversification Opportunities for V2 Retail and India Glycols
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between V2RETAIL and India is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding V2 Retail Limited and India Glycols Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on India Glycols Limited 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 India Glycols. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of India Glycols Limited has no effect on the direction of V2 Retail i.e., V2 Retail and India Glycols go up and down completely randomly.
Pair Corralation between V2 Retail and India Glycols
Assuming the 90 days trading horizon V2 Retail Limited is expected to generate 1.11 times more return on investment than India Glycols. However, V2 Retail is 1.11 times more volatile than India Glycols Limited. It trades about 0.14 of its potential returns per unit of risk. India Glycols Limited is currently generating about 0.01 per unit of risk. If you would invest 116,760 in V2 Retail Limited on August 29, 2024 and sell it today you would earn a total of 10,115 from holding V2 Retail Limited or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V2 Retail Limited vs. India Glycols Limited
Performance |
| Timeline |
| V2 Retail Limited |
| India Glycols Limited |
V2 Retail and India Glycols Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V2 Retail and India Glycols
The main advantage of trading using opposite V2 Retail and India Glycols positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2 Retail position performs unexpectedly, India Glycols 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 India Glycols will offset losses from the drop in India Glycols' long position.| V2 Retail vs. MRF Limited | V2 Retail vs. The Orissa Minerals | V2 Retail vs. Honeywell Automation India | V2 Retail vs. Page Industries Limited |
| India Glycols vs. Gujarat Fluorochemicals Limited | India Glycols vs. Kanoria Chemicals Industries | India Glycols vs. Man Infraconstruction Limited | India Glycols vs. V2 Retail Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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