Correlation Between Baazar Style and SECUREKLOUD TECHNOLOGIES

Can any of the company-specific risk be diversified away by investing in both Baazar Style and SECUREKLOUD TECHNOLOGIES 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 Baazar Style and SECUREKLOUD TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baazar Style Retail and SECUREKLOUD TECHNOLOGIES LIMITED, you can compare the effects of market volatilities on Baazar Style and SECUREKLOUD TECHNOLOGIES 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 Baazar Style with a short position of SECUREKLOUD TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and SECUREKLOUD TECHNOLOGIES.

Diversification Opportunities for Baazar Style and SECUREKLOUD TECHNOLOGIES

0.73

Correlation Coefficient

Baazar Style  SECUREKLOUD TECHNOLOGIES

Poor diversification

The 3 months correlation between Baazar and SECUREKLOUD is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail and SECUREKLOUD TECHNOLOGIES LIMIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECUREKLOUD TECHNOLOGIES and Baazar Style 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 Baazar Style Retail are associated (or correlated) with SECUREKLOUD TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECUREKLOUD TECHNOLOGIES has no effect on the direction of Baazar Style i.e., Baazar Style and SECUREKLOUD TECHNOLOGIES go up and down completely randomly.

Pair Corralation between Baazar Style and SECUREKLOUD TECHNOLOGIES

Assuming the 90 days trading horizon Baazar Style Retail is expected to generate 1.32 times more return on investment than SECUREKLOUD TECHNOLOGIES. However, Baazar Style is 1.32 times more volatile than SECUREKLOUD TECHNOLOGIES LIMITED. It trades about -0.07 of its potential returns per unit of risk. SECUREKLOUD TECHNOLOGIES LIMITED is currently generating about -0.27 per unit of risk. If you would invest  31,300  in Baazar Style Retail on December 30, 2024 and sell it today you would lose (7,227) from holding Baazar Style Retail or give up 23.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Baazar Style Retail  vs.  SECUREKLOUD TECHNOLOGIES LIMIT

Baazar Style Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baazar Style Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SECUREKLOUD TECHNOLOGIES

Risk-Adjusted Performance

Very Weak

Over the last 90 days SECUREKLOUD TECHNOLOGIES LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Baazar Style and SECUREKLOUD TECHNOLOGIES

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

The idea behind Baazar Style Retail and SECUREKLOUD TECHNOLOGIES LIMITED 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.