Correlation Between Kaushalya Infrastructure and CREDITACCESS GRAMEEN
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By analyzing existing cross correlation between Kaushalya Infrastructure Development and CREDITACCESS GRAMEEN LIMITED, you can compare the effects of market volatilities on Kaushalya Infrastructure and CREDITACCESS GRAMEEN 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 Kaushalya Infrastructure with a short position of CREDITACCESS GRAMEEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaushalya Infrastructure and CREDITACCESS GRAMEEN.
Diversification Opportunities for Kaushalya Infrastructure and CREDITACCESS GRAMEEN
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kaushalya and CREDITACCESS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kaushalya Infrastructure Devel and CREDITACCESS GRAMEEN LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDITACCESS GRAMEEN and Kaushalya Infrastructure 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 Kaushalya Infrastructure Development are associated (or correlated) with CREDITACCESS GRAMEEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDITACCESS GRAMEEN has no effect on the direction of Kaushalya Infrastructure i.e., Kaushalya Infrastructure and CREDITACCESS GRAMEEN go up and down completely randomly.
Pair Corralation between Kaushalya Infrastructure and CREDITACCESS GRAMEEN
Assuming the 90 days trading horizon Kaushalya Infrastructure Development is expected to under-perform the CREDITACCESS GRAMEEN. But the stock apears to be less risky and, when comparing its historical volatility, Kaushalya Infrastructure Development is 1.84 times less risky than CREDITACCESS GRAMEEN. The stock trades about -0.38 of its potential returns per unit of risk. The CREDITACCESS GRAMEEN LIMITED is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 93,455 in CREDITACCESS GRAMEEN LIMITED on November 4, 2024 and sell it today you would earn a total of 14,830 from holding CREDITACCESS GRAMEEN LIMITED or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaushalya Infrastructure Devel vs. CREDITACCESS GRAMEEN LIMITED
Performance |
| Timeline |
| Kaushalya Infrastructure |
| CREDITACCESS GRAMEEN |
Kaushalya Infrastructure and CREDITACCESS GRAMEEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaushalya Infrastructure and CREDITACCESS GRAMEEN
The main advantage of trading using opposite Kaushalya Infrastructure and CREDITACCESS GRAMEEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaushalya Infrastructure position performs unexpectedly, CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN will offset losses from the drop in CREDITACCESS GRAMEEN's long position.The idea behind Kaushalya Infrastructure Development and CREDITACCESS GRAMEEN LIMITED pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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