Correlation Between G Tec and Prakash Steelage
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By analyzing existing cross correlation between G Tec Jainx Education and Prakash Steelage Limited, you can compare the effects of market volatilities on G Tec and Prakash Steelage 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 G Tec with a short position of Prakash Steelage. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Tec and Prakash Steelage.
Diversification Opportunities for G Tec and Prakash Steelage
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GTECJAINX and Prakash is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding G Tec Jainx Education and Prakash Steelage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prakash Steelage and G Tec 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 G Tec Jainx Education are associated (or correlated) with Prakash Steelage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prakash Steelage has no effect on the direction of G Tec i.e., G Tec and Prakash Steelage go up and down completely randomly.
Pair Corralation between G Tec and Prakash Steelage
Assuming the 90 days trading horizon G Tec Jainx Education is expected to generate 1.14 times more return on investment than Prakash Steelage. However, G Tec is 1.14 times more volatile than Prakash Steelage Limited. It trades about 0.16 of its potential returns per unit of risk. Prakash Steelage Limited is currently generating about 0.09 per unit of risk. If you would invest 3,532 in G Tec Jainx Education on September 24, 2024 and sell it today you would earn a total of 343.00 from holding G Tec Jainx Education or generate 9.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
G Tec Jainx Education vs. Prakash Steelage Limited
Performance |
Timeline |
G Tec Jainx |
Prakash Steelage |
G Tec and Prakash Steelage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Tec and Prakash Steelage
The main advantage of trading using opposite G Tec and Prakash Steelage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Tec position performs unexpectedly, Prakash Steelage 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 Prakash Steelage will offset losses from the drop in Prakash Steelage's long position.G Tec vs. Prakash Steelage Limited | G Tec vs. SAL Steel Limited | G Tec vs. Manaksia Steels Limited | G Tec vs. Music Broadcast 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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