Correlation Between Agro Tech and Kilitch Drugs
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By analyzing existing cross correlation between Agro Tech Foods and Kilitch Drugs Limited, you can compare the effects of market volatilities on Agro Tech and Kilitch Drugs 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 Agro Tech with a short position of Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Tech and Kilitch Drugs.
Diversification Opportunities for Agro Tech and Kilitch Drugs
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agro and Kilitch is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Agro Tech Foods and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs Limited and Agro Tech 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 Agro Tech Foods are associated (or correlated) with Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of Agro Tech i.e., Agro Tech and Kilitch Drugs go up and down completely randomly.
Pair Corralation between Agro Tech and Kilitch Drugs
Assuming the 90 days trading horizon Agro Tech Foods is expected to generate 1.2 times more return on investment than Kilitch Drugs. However, Agro Tech is 1.2 times more volatile than Kilitch Drugs Limited. It trades about 0.02 of its potential returns per unit of risk. Kilitch Drugs Limited is currently generating about -0.01 per unit of risk. If you would invest 93,670 in Agro Tech Foods on September 1, 2024 and sell it today you would earn a total of 145.00 from holding Agro Tech Foods or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agro Tech Foods vs. Kilitch Drugs Limited
Performance |
| Timeline |
| Agro Tech Foods |
| Kilitch Drugs Limited |
Agro Tech and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Tech and Kilitch Drugs
The main advantage of trading using opposite Agro Tech and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Tech position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' long position.| Agro Tech vs. Kingfa Science Technology | Agro Tech vs. Rico Auto Industries | Agro Tech vs. GACM Technologies Limited | Agro Tech vs. COSMO FIRST LIMITED |
| Kilitch Drugs vs. Sarveshwar Foods Limited | Kilitch Drugs vs. Ankit Metal Power | Kilitch Drugs vs. Industrial Investment Trust | Kilitch Drugs vs. NRB Industrial Bearings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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