Correlation Between CREDITACCESS GRAMEEN and KNR Constructions
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and KNR Constructions Limited, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and KNR Constructions 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 CREDITACCESS GRAMEEN with a short position of KNR Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and KNR Constructions.
Diversification Opportunities for CREDITACCESS GRAMEEN and KNR Constructions
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREDITACCESS and KNR is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and KNR Constructions Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KNR Constructions and CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED are associated (or correlated) with KNR Constructions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KNR Constructions has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and KNR Constructions go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and KNR Constructions
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 1.65 times more return on investment than KNR Constructions. However, CREDITACCESS GRAMEEN is 1.65 times more volatile than KNR Constructions Limited. It trades about 0.14 of its potential returns per unit of risk. KNR Constructions Limited is currently generating about -0.04 per unit of risk. If you would invest 90,340 in CREDITACCESS GRAMEEN LIMITED on October 12, 2024 and sell it today you would earn a total of 9,615 from holding CREDITACCESS GRAMEEN LIMITED or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. KNR Constructions Limited
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| KNR Constructions |
CREDITACCESS GRAMEEN and KNR Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and KNR Constructions
The main advantage of trading using opposite CREDITACCESS GRAMEEN and KNR Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, KNR Constructions 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 KNR Constructions will offset losses from the drop in KNR Constructions' long position.| CREDITACCESS GRAMEEN vs. Vraj Iron and | CREDITACCESS GRAMEEN vs. Kalyani Steels Limited | CREDITACCESS GRAMEEN vs. HDFC Asset Management | CREDITACCESS GRAMEEN vs. STEEL EXCHANGE INDIA |
| KNR Constructions vs. General Insurance | KNR Constructions vs. Hilton Metal Forging | KNR Constructions vs. CREDITACCESS GRAMEEN LIMITED | KNR Constructions vs. Tamilnad Mercantile Bank |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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