Correlation Between V Mart and Baazar Style
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By analyzing existing cross correlation between V Mart Retail Limited and Baazar Style Retail, you can compare the effects of market volatilities on V Mart 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 V Mart with a short position of Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of V Mart and Baazar Style.
Diversification Opportunities for V Mart and Baazar Style
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VMART and Baazar is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding V Mart Retail 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 V Mart 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 V Mart Retail 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 V Mart i.e., V Mart and Baazar Style go up and down completely randomly.
Pair Corralation between V Mart and Baazar Style
Assuming the 90 days trading horizon V Mart Retail Limited is expected to generate 0.61 times more return on investment than Baazar Style. However, V Mart Retail Limited is 1.63 times less risky than Baazar Style. It trades about 0.04 of its potential returns per unit of risk. Baazar Style Retail is currently generating about -0.1 per unit of risk. If you would invest 246,815 in V Mart Retail Limited on November 5, 2024 and sell it today you would earn a total of 74,205 from holding V Mart Retail Limited or generate 30.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 21.15% |
| Values | Daily Returns |
V Mart Retail Limited vs. Baazar Style Retail
Performance |
| Timeline |
| V Mart Retail |
| Baazar Style Retail |
V Mart and Baazar Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V Mart and Baazar Style
The main advantage of trading using opposite V Mart and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V Mart 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.| V Mart vs. Datamatics Global Services | V Mart vs. UCO Bank | V Mart vs. Kotak Mahindra Bank | V Mart vs. Kalyani Investment |
| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Visa Steel 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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