Correlation Between Bharatiya Global and Pritish Nandy

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

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

Diversification Opportunities for Bharatiya Global and Pritish Nandy

-0.41

Correlation Coefficient

Bharatiya Global  Pritish Nandy

Very good diversification

The 3 months correlation between Bharatiya and Pritish is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bharatiya Global Infomedia and Pritish Nandy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pritish Nandy Commun and Bharatiya Global 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 Bharatiya Global Infomedia are associated (or correlated) with Pritish Nandy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pritish Nandy Commun has no effect on the direction of Bharatiya Global i.e., Bharatiya Global and Pritish Nandy go up and down completely randomly.

Pair Corralation between Bharatiya Global and Pritish Nandy

Assuming the 90 days trading horizon Bharatiya Global is expected to generate 1.2 times less return on investment than Pritish Nandy. But when comparing it to its historical volatility, Bharatiya Global Infomedia is 2.0 times less risky than Pritish Nandy. It trades about 0.06 of its potential returns per unit of risk. Pritish Nandy Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,135  in Pritish Nandy Communications on October 7, 2024 and sell it today you would earn a total of  1,731  from holding Pritish Nandy Communications or generate 41.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.77%
Values	Daily Returns

Bharatiya Global Infomedia  vs.  Pritish Nandy Communications

Bharatiya Global Inf

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Bharatiya Global Infomedia are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, Bharatiya Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pritish Nandy Commun

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pritish Nandy Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Pritish Nandy is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bharatiya Global and Pritish Nandy

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

The idea behind Bharatiya Global Infomedia and Pritish Nandy Communications 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.