Correlation Between Centum Electronics and Kewal Kiran
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By analyzing existing cross correlation between Centum Electronics Limited and Kewal Kiran Clothing, you can compare the effects of market volatilities on Centum Electronics and Kewal Kiran 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 Centum Electronics with a short position of Kewal Kiran. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Kewal Kiran.
Diversification Opportunities for Centum Electronics and Kewal Kiran
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Centum and Kewal is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Kewal Kiran Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kewal Kiran Clothing and Centum Electronics 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 Centum Electronics Limited are associated (or correlated) with Kewal Kiran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kewal Kiran Clothing has no effect on the direction of Centum Electronics i.e., Centum Electronics and Kewal Kiran go up and down completely randomly.
Pair Corralation between Centum Electronics and Kewal Kiran
Assuming the 90 days trading horizon Centum Electronics Limited is expected to generate 1.78 times more return on investment than Kewal Kiran. However, Centum Electronics is 1.78 times more volatile than Kewal Kiran Clothing. It trades about 0.08 of its potential returns per unit of risk. Kewal Kiran Clothing is currently generating about 0.03 per unit of risk. If you would invest 57,325 in Centum Electronics Limited on September 2, 2024 and sell it today you would earn a total of 99,645 from holding Centum Electronics Limited or generate 173.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Centum Electronics Limited vs. Kewal Kiran Clothing
Performance |
| Timeline |
| Centum Electronics |
| Kewal Kiran Clothing |
Centum Electronics and Kewal Kiran Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Kewal Kiran
The main advantage of trading using opposite Centum Electronics and Kewal Kiran positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Kewal Kiran 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 Kewal Kiran will offset losses from the drop in Kewal Kiran's long position.| Centum Electronics vs. The Orissa Minerals | Centum Electronics vs. Malu Paper Mills | Centum Electronics vs. Kingfa Science Technology | Centum Electronics vs. Rico Auto Industries |
| Kewal Kiran vs. State Bank of | Kewal Kiran vs. Life Insurance | Kewal Kiran vs. HDFC Bank Limited | Kewal Kiran vs. ICICI Bank 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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