Correlation Between 20 Microns and Baazar Style

Can any of the company-specific risk be diversified away by investing in both 20 Microns and Baazar Style at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 20 Microns and Baazar Style into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 20 Microns Limited and Baazar Style Retail, you can compare the effects of market volatilities on 20 Microns 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 20 Microns with a short position of Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of 20 Microns and Baazar Style.

Diversification Opportunities for 20 Microns and Baazar Style

0.0

Correlation Coefficient

20 Microns  Baazar Style

Pay attention - limited upside

The 3 months correlation between 20MICRONS and Baazar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 20 Microns 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 20 Microns 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 20 Microns 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 20 Microns i.e., 20 Microns and Baazar Style go up and down completely randomly.

Pair Corralation between 20 Microns and Baazar Style

If you would invest (100.00) in 20 Microns Limited on September 4, 2024 and sell it today you would earn a total of  100.00  from holding 20 Microns Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

20 Microns Limited  vs.  Baazar Style Retail

20 Microns Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 20 Microns Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, 20 Microns is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Baazar Style Retail

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baazar Style Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with 20 Microns and Baazar Style

The main advantage of trading using opposite 20 Microns and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 20 Microns 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.

The idea behind 20 Microns Limited and Baazar Style Retail pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.