Correlation Between Kaynes Technology and Life Insurance
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By analyzing existing cross correlation between Kaynes Technology India and Life Insurance, you can compare the effects of market volatilities on Kaynes Technology and Life Insurance 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 Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaynes Technology and Life Insurance.
Diversification Opportunities for Kaynes Technology and Life Insurance
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaynes and Life is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kaynes Technology India and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance 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 Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of Kaynes Technology i.e., Kaynes Technology and Life Insurance go up and down completely randomly.
Pair Corralation between Kaynes Technology and Life Insurance
Assuming the 90 days trading horizon Kaynes Technology India is expected to generate 1.8 times more return on investment than Life Insurance. However, Kaynes Technology is 1.8 times more volatile than Life Insurance. It trades about 0.13 of its potential returns per unit of risk. Life Insurance is currently generating about -0.03 per unit of risk. If you would invest 568,230 in Kaynes Technology India on September 13, 2024 and sell it today you would earn a total of 82,465 from holding Kaynes Technology India or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaynes Technology India vs. Life Insurance
Performance |
| Timeline |
| Kaynes Technology India |
| Life Insurance |
Kaynes Technology and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaynes Technology and Life Insurance
The main advantage of trading using opposite Kaynes Technology and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaynes Technology position performs unexpectedly, Life Insurance 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| Kaynes Technology vs. Vodafone Idea Limited | Kaynes Technology vs. Yes Bank Limited | Kaynes Technology vs. Indian Overseas Bank | Kaynes Technology vs. Indian Oil |
| Life Insurance vs. Vodafone Idea Limited | Life Insurance vs. Yes Bank Limited | Life Insurance vs. Indian Overseas Bank | Life Insurance vs. Indian Oil |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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