Correlation Between GTL and Kaynes Technology
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By analyzing existing cross correlation between GTL Limited and Kaynes Technology India, you can compare the effects of market volatilities on GTL and Kaynes Technology 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 GTL with a short position of Kaynes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and Kaynes Technology.
Diversification Opportunities for GTL and Kaynes Technology
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GTL and Kaynes is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and Kaynes Technology India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaynes Technology India and GTL 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 GTL Limited are associated (or correlated) with Kaynes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaynes Technology India has no effect on the direction of GTL i.e., GTL and Kaynes Technology go up and down completely randomly.
Pair Corralation between GTL and Kaynes Technology
Assuming the 90 days trading horizon GTL is expected to generate 1.49 times less return on investment than Kaynes Technology. In addition to that, GTL is 1.46 times more volatile than Kaynes Technology India. It trades about 0.06 of its total potential returns per unit of risk. Kaynes Technology India is currently generating about 0.14 per unit of volatility. If you would invest 237,770 in Kaynes Technology India on September 4, 2024 and sell it today you would earn a total of 394,135 from holding Kaynes Technology India or generate 165.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
GTL Limited vs. Kaynes Technology India
Performance |
| Timeline |
| GTL Limited |
| Kaynes Technology India |
GTL and Kaynes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and Kaynes Technology
The main advantage of trading using opposite GTL and Kaynes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL position performs unexpectedly, Kaynes Technology 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 Kaynes Technology will offset losses from the drop in Kaynes Technology's long position.| GTL vs. EMBASSY OFFICE PARKS | GTL vs. Sonata Software Limited | GTL vs. Bharat Road Network | GTL vs. Syrma SGS Technology |
| Kaynes Technology vs. Kingfa Science Technology | Kaynes Technology vs. Rico Auto Industries | Kaynes Technology vs. GACM Technologies Limited | Kaynes Technology vs. Delta Manufacturing 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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