Correlation Between COSMO FIRST and Kajaria Ceramics
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Kajaria Ceramics Limited, you can compare the effects of market volatilities on COSMO FIRST and Kajaria Ceramics 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 COSMO FIRST with a short position of Kajaria Ceramics. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Kajaria Ceramics.
Diversification Opportunities for COSMO FIRST and Kajaria Ceramics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between COSMO and Kajaria is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and Kajaria Ceramics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kajaria Ceramics and COSMO FIRST 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 COSMO FIRST LIMITED are associated (or correlated) with Kajaria Ceramics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kajaria Ceramics has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and Kajaria Ceramics go up and down completely randomly.
Pair Corralation between COSMO FIRST and Kajaria Ceramics
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 1.36 times more return on investment than Kajaria Ceramics. However, COSMO FIRST is 1.36 times more volatile than Kajaria Ceramics Limited. It trades about 0.02 of its potential returns per unit of risk. Kajaria Ceramics Limited is currently generating about 0.02 per unit of risk. If you would invest 70,851 in COSMO FIRST LIMITED on September 14, 2024 and sell it today you would earn a total of 11,609 from holding COSMO FIRST LIMITED or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Kajaria Ceramics Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Kajaria Ceramics |
COSMO FIRST and Kajaria Ceramics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Kajaria Ceramics
The main advantage of trading using opposite COSMO FIRST and Kajaria Ceramics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, Kajaria Ceramics 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 Kajaria Ceramics will offset losses from the drop in Kajaria Ceramics' long position.| COSMO FIRST vs. NMDC Limited | COSMO FIRST vs. Steel Authority of | COSMO FIRST vs. Embassy Office Parks | COSMO FIRST vs. Gujarat Narmada Valley |
| Kajaria Ceramics vs. Kingfa Science Technology | Kajaria Ceramics vs. Rico Auto Industries | Kajaria Ceramics vs. GACM Technologies Limited | Kajaria Ceramics vs. COSMO FIRST 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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