Correlation Between Gangotri Textiles and Kohinoor Foods
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By analyzing existing cross correlation between Gangotri Textiles Limited and Kohinoor Foods Limited, you can compare the effects of market volatilities on Gangotri Textiles and Kohinoor Foods 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 Gangotri Textiles with a short position of Kohinoor Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gangotri Textiles and Kohinoor Foods.
Diversification Opportunities for Gangotri Textiles and Kohinoor Foods
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gangotri and Kohinoor is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gangotri Textiles Limited and Kohinoor Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohinoor Foods and Gangotri Textiles 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 Gangotri Textiles Limited are associated (or correlated) with Kohinoor Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohinoor Foods has no effect on the direction of Gangotri Textiles i.e., Gangotri Textiles and Kohinoor Foods go up and down completely randomly.
Pair Corralation between Gangotri Textiles and Kohinoor Foods
Assuming the 90 days trading horizon Gangotri Textiles Limited is expected to generate 0.58 times more return on investment than Kohinoor Foods. However, Gangotri Textiles Limited is 1.73 times less risky than Kohinoor Foods. It trades about 0.01 of its potential returns per unit of risk. Kohinoor Foods Limited is currently generating about -0.01 per unit of risk. If you would invest 105.00 in Gangotri Textiles Limited on November 5, 2024 and sell it today you would earn a total of 4.00 from holding Gangotri Textiles Limited or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.77% |
| Values | Daily Returns |
Gangotri Textiles Limited vs. Kohinoor Foods Limited
Performance |
| Timeline |
| Gangotri Textiles |
| Kohinoor Foods |
Gangotri Textiles and Kohinoor Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gangotri Textiles and Kohinoor Foods
The main advantage of trading using opposite Gangotri Textiles and Kohinoor Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gangotri Textiles position performs unexpectedly, Kohinoor Foods 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 Kohinoor Foods will offset losses from the drop in Kohinoor Foods' long position.| Gangotri Textiles vs. Megastar Foods Limited | Gangotri Textiles vs. Apex Frozen Foods | Gangotri Textiles vs. Patanjali Foods Limited | Gangotri Textiles vs. Dodla Dairy Limited |
| Kohinoor Foods vs. Reliance Industries Limited | Kohinoor Foods vs. Tata Motors Limited | Kohinoor Foods vs. Oil Natural Gas | Kohinoor Foods vs. HCL Technologies 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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