Correlation Between GPT Healthcare and Kalyani Steels
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By analyzing existing cross correlation between GPT Healthcare and Kalyani Steels Limited, you can compare the effects of market volatilities on GPT Healthcare and Kalyani Steels 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 GPT Healthcare with a short position of Kalyani Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GPT Healthcare and Kalyani Steels.
Diversification Opportunities for GPT Healthcare and Kalyani Steels
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GPT and Kalyani is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding GPT Healthcare and Kalyani Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalyani Steels and GPT 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 GPT Healthcare are associated (or correlated) with Kalyani Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalyani Steels has no effect on the direction of GPT Healthcare i.e., GPT Healthcare and Kalyani Steels go up and down completely randomly.
Pair Corralation between GPT Healthcare and Kalyani Steels
Assuming the 90 days trading horizon GPT Healthcare is expected to under-perform the Kalyani Steels. But the stock apears to be less risky and, when comparing its historical volatility, GPT Healthcare is 1.09 times less risky than Kalyani Steels. The stock trades about -0.05 of its potential returns per unit of risk. The Kalyani Steels Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 30,147 in Kalyani Steels Limited on December 2, 2024 and sell it today you would earn a total of 42,863 from holding Kalyani Steels Limited or generate 142.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.93% |
| Values | Daily Returns |
GPT Healthcare vs. Kalyani Steels Limited
Performance |
| Timeline |
| GPT Healthcare |
| Kalyani Steels |
GPT Healthcare and Kalyani Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GPT Healthcare and Kalyani Steels
The main advantage of trading using opposite GPT Healthcare and Kalyani Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GPT Healthcare position performs unexpectedly, Kalyani Steels 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 Kalyani Steels will offset losses from the drop in Kalyani Steels' long position.| GPT Healthcare vs. Agro Tech Foods | GPT Healthcare vs. LT Foods Limited | GPT Healthcare vs. Jayant Agro Organics | GPT Healthcare vs. Zodiac Clothing |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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