Correlation Between Zomato and Selan Exploration
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By analyzing existing cross correlation between Zomato Limited and Selan Exploration Technology, you can compare the effects of market volatilities on Zomato and Selan Exploration 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 Zomato with a short position of Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zomato and Selan Exploration.
Diversification Opportunities for Zomato and Selan Exploration
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zomato and Selan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zomato Limited and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration and Zomato 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 Zomato Limited are associated (or correlated) with Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Zomato i.e., Zomato and Selan Exploration go up and down completely randomly.
Pair Corralation between Zomato and Selan Exploration
Assuming the 90 days trading horizon Zomato Limited is expected to generate 0.72 times more return on investment than Selan Exploration. However, Zomato Limited is 1.39 times less risky than Selan Exploration. It trades about 0.15 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about 0.1 per unit of risk. If you would invest 5,815 in Zomato Limited on September 14, 2024 and sell it today you would earn a total of 22,675 from holding Zomato Limited or generate 389.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Zomato Limited vs. Selan Exploration Technology
Performance |
| Timeline |
| Zomato Limited |
| Selan Exploration |
Zomato and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zomato and Selan Exploration
The main advantage of trading using opposite Zomato and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zomato position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Zomato vs. Reliance Industries Limited | Zomato vs. HDFC Bank Limited | Zomato vs. Tata Consultancy Services | Zomato vs. Bharti Airtel Limited |
| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. State Bank of | Selan Exploration vs. Zomato 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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