Correlation Between Electrosteel Castings and Karur Vysya
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By analyzing existing cross correlation between Electrosteel Castings Limited and Karur Vysya Bank, you can compare the effects of market volatilities on Electrosteel Castings and Karur Vysya 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 Electrosteel Castings with a short position of Karur Vysya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrosteel Castings and Karur Vysya.
Diversification Opportunities for Electrosteel Castings and Karur Vysya
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electrosteel and Karur is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Electrosteel Castings Limited and Karur Vysya Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karur Vysya Bank and Electrosteel Castings 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 Electrosteel Castings Limited are associated (or correlated) with Karur Vysya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karur Vysya Bank has no effect on the direction of Electrosteel Castings i.e., Electrosteel Castings and Karur Vysya go up and down completely randomly.
Pair Corralation between Electrosteel Castings and Karur Vysya
Assuming the 90 days trading horizon Electrosteel Castings Limited is expected to under-perform the Karur Vysya. In addition to that, Electrosteel Castings is 1.31 times more volatile than Karur Vysya Bank. It trades about -0.2 of its total potential returns per unit of risk. Karur Vysya Bank is currently generating about 0.11 per unit of volatility. If you would invest 22,210 in Karur Vysya Bank on November 2, 2024 and sell it today you would earn a total of 1,174 from holding Karur Vysya Bank or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrosteel Castings Limited vs. Karur Vysya Bank
Performance |
| Timeline |
| Electrosteel Castings |
| Karur Vysya Bank |
Electrosteel Castings and Karur Vysya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrosteel Castings and Karur Vysya
The main advantage of trading using opposite Electrosteel Castings and Karur Vysya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrosteel Castings position performs unexpectedly, Karur Vysya 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 Karur Vysya will offset losses from the drop in Karur Vysya's long position.| Electrosteel Castings vs. Patanjali Foods Limited | Electrosteel Castings vs. ADF Foods Limited | Electrosteel Castings vs. Parag Milk Foods | Electrosteel Castings vs. Bombay Burmah Trading |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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