Correlation Between GTL and State Tradingof
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By analyzing existing cross correlation between GTL Limited and The State Trading, you can compare the effects of market volatilities on GTL and State Tradingof 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 GTL with a short position of State Tradingof. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and State Tradingof.
Diversification Opportunities for GTL and State Tradingof
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GTL and State is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Tradingof and GTL 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 GTL Limited are associated (or correlated) with State Tradingof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Tradingof has no effect on the direction of GTL i.e., GTL and State Tradingof go up and down completely randomly.
Pair Corralation between GTL and State Tradingof
Assuming the 90 days trading horizon GTL Limited is expected to under-perform the State Tradingof. But the stock apears to be less risky and, when comparing its historical volatility, GTL Limited is 1.51 times less risky than State Tradingof. The stock trades about -0.57 of its potential returns per unit of risk. The The State Trading is currently generating about -0.36 of returns per unit of risk over similar time horizon. If you would invest 15,192 in The State Trading on November 20, 2024 and sell it today you would lose (3,033) from holding The State Trading or give up 19.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
GTL Limited vs. The State Trading
Performance |
Timeline |
GTL Limited |
State Tradingof |
GTL and State Tradingof Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GTL and State Tradingof
The main advantage of trading using opposite GTL and State Tradingof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL position performs unexpectedly, State Tradingof 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 State Tradingof will offset losses from the drop in State Tradingof's long position.GTL vs. Kohinoor Foods Limited | GTL vs. WESTLIFE FOODWORLD LIMITED | GTL vs. IDFC First Bank | GTL vs. Foods Inns Limited |
State Tradingof vs. Music Broadcast Limited | State Tradingof vs. JB Chemicals Pharmaceuticals | State Tradingof vs. Gujarat Fluorochemicals Limited | State Tradingof vs. Hi Tech Pipes Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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