Correlation Between Fortis Healthcare and KEC International
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By analyzing existing cross correlation between Fortis Healthcare Limited and KEC International Limited, you can compare the effects of market volatilities on Fortis Healthcare and KEC International 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 Fortis Healthcare with a short position of KEC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortis Healthcare and KEC International.
Diversification Opportunities for Fortis Healthcare and KEC International
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fortis and KEC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fortis Healthcare Limited and KEC International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEC International and Fortis Healthcare 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 Fortis Healthcare Limited are associated (or correlated) with KEC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEC International has no effect on the direction of Fortis Healthcare i.e., Fortis Healthcare and KEC International go up and down completely randomly.
Pair Corralation between Fortis Healthcare and KEC International
Assuming the 90 days trading horizon Fortis Healthcare is expected to generate 1.41 times less return on investment than KEC International. But when comparing it to its historical volatility, Fortis Healthcare Limited is 1.27 times less risky than KEC International. It trades about 0.16 of its potential returns per unit of risk. KEC International Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 92,455 in KEC International Limited on August 30, 2024 and sell it today you would earn a total of 9,850 from holding KEC International Limited or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortis Healthcare Limited vs. KEC International Limited
Performance |
| Timeline |
| Fortis Healthcare |
| KEC International |
Fortis Healthcare and KEC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortis Healthcare and KEC International
The main advantage of trading using opposite Fortis Healthcare and KEC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortis Healthcare position performs unexpectedly, KEC International 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 KEC International will offset losses from the drop in KEC International's long position.| Fortis Healthcare vs. State Bank of | Fortis Healthcare vs. Life Insurance | Fortis Healthcare vs. HDFC Bank Limited | Fortis Healthcare vs. ICICI Bank Limited |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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