Correlation Between Aban Offshore and Bharatiya Global

Can any of the company-specific risk be diversified away by investing in both Aban Offshore and Bharatiya Global 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 Aban Offshore and Bharatiya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aban Offshore Limited and Bharatiya Global Infomedia, you can compare the effects of market volatilities on Aban Offshore and Bharatiya Global 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 Aban Offshore with a short position of Bharatiya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aban Offshore and Bharatiya Global.

Diversification Opportunities for Aban Offshore and Bharatiya Global

-0.03

Correlation Coefficient

Aban Offshore  Bharatiya Global

Good diversification

The 3 months correlation between Aban and Bharatiya is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aban Offshore Limited and Bharatiya Global Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bharatiya Global Inf and Aban Offshore 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 Aban Offshore Limited are associated (or correlated) with Bharatiya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bharatiya Global Inf has no effect on the direction of Aban Offshore i.e., Aban Offshore and Bharatiya Global go up and down completely randomly.

Pair Corralation between Aban Offshore and Bharatiya Global

Assuming the 90 days trading horizon Aban Offshore Limited is expected to under-perform the Bharatiya Global. In addition to that, Aban Offshore is 1.41 times more volatile than Bharatiya Global Infomedia. It trades about -0.23 of its total potential returns per unit of risk. Bharatiya Global Infomedia is currently generating about -0.01 per unit of volatility. If you would invest  389.00  in Bharatiya Global Infomedia on December 2, 2024 and sell it today you would lose (10.00) from holding Bharatiya Global Infomedia or give up 2.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Aban Offshore Limited  vs.  Bharatiya Global Infomedia

Aban Offshore Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aban Offshore Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bharatiya Global Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bharatiya Global Infomedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Bharatiya Global is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Aban Offshore and Bharatiya Global

The main advantage of trading using opposite Aban Offshore and Bharatiya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aban Offshore position performs unexpectedly, Bharatiya Global 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 Bharatiya Global will offset losses from the drop in Bharatiya Global's long position.

The idea behind Aban Offshore Limited and Bharatiya Global Infomedia 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.