Correlation Between Golden Tobacco and Investment Trust
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By analyzing existing cross correlation between Golden Tobacco Limited and The Investment Trust, you can compare the effects of market volatilities on Golden Tobacco and Investment Trust 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 Golden Tobacco with a short position of Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and Investment Trust.
Diversification Opportunities for Golden Tobacco and Investment Trust
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Investment is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco Limited and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust and Golden Tobacco 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 Golden Tobacco Limited are associated (or correlated) with Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Golden Tobacco i.e., Golden Tobacco and Investment Trust go up and down completely randomly.
Pair Corralation between Golden Tobacco and Investment Trust
Assuming the 90 days trading horizon Golden Tobacco Limited is expected to under-perform the Investment Trust. In addition to that, Golden Tobacco is 1.05 times more volatile than The Investment Trust. It trades about -0.02 of its total potential returns per unit of risk. The Investment Trust is currently generating about 0.0 per unit of volatility. If you would invest 20,078 in The Investment Trust on October 3, 2024 and sell it today you would lose (446.00) from holding The Investment Trust or give up 2.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Golden Tobacco Limited vs. The Investment Trust
Performance |
Timeline |
Golden Tobacco |
Investment Trust |
Golden Tobacco and Investment Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golden Tobacco and Investment Trust
The main advantage of trading using opposite Golden Tobacco and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.Golden Tobacco vs. Reliance Industries Limited | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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