Correlation Between Wipro and Great Eastern
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By analyzing existing cross correlation between Wipro Limited and The Great Eastern, you can compare the effects of market volatilities on Wipro 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 Wipro with a short position of Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wipro and Great Eastern.
Diversification Opportunities for Wipro and Great Eastern
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wipro and Great is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wipro 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 Wipro 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 Wipro 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 Wipro i.e., Wipro and Great Eastern go up and down completely randomly.
Pair Corralation between Wipro and Great Eastern
Assuming the 90 days trading horizon Wipro Limited is expected to generate 0.79 times more return on investment than Great Eastern. However, Wipro Limited is 1.26 times less risky than Great Eastern. It trades about 0.12 of its potential returns per unit of risk. The Great Eastern is currently generating about 0.03 per unit of risk. If you would invest 45,150 in Wipro Limited on September 3, 2024 and sell it today you would earn a total of 13,305 from holding Wipro Limited or generate 29.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wipro Limited vs. The Great Eastern
Performance |
| Timeline |
| Wipro Limited |
| Great Eastern |
Wipro and Great Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wipro and Great Eastern
The main advantage of trading using opposite Wipro and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wipro 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.| Wipro vs. Consolidated Construction Consortium | Wipro vs. Biofil Chemicals Pharmaceuticals | Wipro vs. Shipping | Wipro vs. Indo Borax Chemicals |
| Great Eastern vs. Royal Orchid Hotels | Great Eastern vs. Taj GVK Hotels | Great Eastern vs. V2 Retail Limited | Great Eastern vs. Cartrade Tech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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