Correlation Between BAG Films and Gangotri Textiles
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By analyzing existing cross correlation between BAG Films and and Gangotri Textiles Limited, you can compare the effects of market volatilities on BAG Films and Gangotri Textiles 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 BAG Films with a short position of Gangotri Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAG Films and Gangotri Textiles.
Diversification Opportunities for BAG Films and Gangotri Textiles
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BAG and Gangotri is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BAG Films and and Gangotri Textiles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gangotri Textiles and BAG Films 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 BAG Films and are associated (or correlated) with Gangotri Textiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gangotri Textiles has no effect on the direction of BAG Films i.e., BAG Films and Gangotri Textiles go up and down completely randomly.
Pair Corralation between BAG Films and Gangotri Textiles
Assuming the 90 days trading horizon BAG Films and is expected to generate 2.02 times more return on investment than Gangotri Textiles. However, BAG Films is 2.02 times more volatile than Gangotri Textiles Limited. It trades about 0.06 of its potential returns per unit of risk. Gangotri Textiles Limited is currently generating about -0.12 per unit of risk. If you would invest 1,037 in BAG Films and on September 23, 2024 and sell it today you would earn a total of 118.00 from holding BAG Films and or generate 11.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
BAG Films and vs. Gangotri Textiles Limited
Performance |
Timeline |
BAG Films |
Gangotri Textiles |
BAG Films and Gangotri Textiles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BAG Films and Gangotri Textiles
The main advantage of trading using opposite BAG Films and Gangotri Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAG Films position performs unexpectedly, Gangotri Textiles 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 Gangotri Textiles will offset losses from the drop in Gangotri Textiles' long position.BAG Films vs. Gangotri Textiles Limited | BAG Films vs. Hemisphere Properties India | BAG Films vs. Kingfa Science Technology | BAG Films vs. Rico Auto Industries |
Gangotri Textiles vs. Reliance Industries Limited | Gangotri Textiles vs. HDFC Bank Limited | Gangotri Textiles vs. Kingfa Science Technology | Gangotri Textiles vs. Rico Auto Industries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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