Correlation Between Kaynes Technology and IG Petrochemicals
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By analyzing existing cross correlation between Kaynes Technology India and IG Petrochemicals Limited, you can compare the effects of market volatilities on Kaynes Technology and IG Petrochemicals 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 Kaynes Technology with a short position of IG Petrochemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaynes Technology and IG Petrochemicals.
Diversification Opportunities for Kaynes Technology and IG Petrochemicals
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kaynes and IGPL is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kaynes Technology India and IG Petrochemicals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IG Petrochemicals and Kaynes Technology 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 Kaynes Technology India are associated (or correlated) with IG Petrochemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IG Petrochemicals has no effect on the direction of Kaynes Technology i.e., Kaynes Technology and IG Petrochemicals go up and down completely randomly.
Pair Corralation between Kaynes Technology and IG Petrochemicals
Assuming the 90 days trading horizon Kaynes Technology India is expected to generate 1.12 times more return on investment than IG Petrochemicals. However, Kaynes Technology is 1.12 times more volatile than IG Petrochemicals Limited. It trades about 0.2 of its potential returns per unit of risk. IG Petrochemicals Limited is currently generating about -0.23 per unit of risk. If you would invest 635,510 in Kaynes Technology India on October 11, 2024 and sell it today you would earn a total of 61,555 from holding Kaynes Technology India or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kaynes Technology India vs. IG Petrochemicals Limited
Performance |
| Timeline |
| Kaynes Technology India |
| IG Petrochemicals |
Kaynes Technology and IG Petrochemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaynes Technology and IG Petrochemicals
The main advantage of trading using opposite Kaynes Technology and IG Petrochemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaynes Technology position performs unexpectedly, IG Petrochemicals 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 IG Petrochemicals will offset losses from the drop in IG Petrochemicals' long position.| Kaynes Technology vs. Syrma SGS Technology | Kaynes Technology vs. ideaForge Technology Limited | Kaynes Technology vs. Nucleus Software Exports | Kaynes Technology vs. Dev Information Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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