Correlation Between KEC International and Garuda Construction
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By analyzing existing cross correlation between KEC International Limited and Garuda Construction Engineering, you can compare the effects of market volatilities on KEC International and Garuda Construction 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 KEC International with a short position of Garuda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEC International and Garuda Construction.
Diversification Opportunities for KEC International and Garuda Construction
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between KEC and Garuda is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding KEC International Limited and Garuda Construction Engineerin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garuda Construction and KEC International 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 KEC International Limited are associated (or correlated) with Garuda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garuda Construction has no effect on the direction of KEC International i.e., KEC International and Garuda Construction go up and down completely randomly.
Pair Corralation between KEC International and Garuda Construction
Assuming the 90 days trading horizon KEC International Limited is expected to under-perform the Garuda Construction. But the stock apears to be less risky and, when comparing its historical volatility, KEC International Limited is 1.54 times less risky than Garuda Construction. The stock trades about -0.48 of its potential returns per unit of risk. The Garuda Construction Engineering is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 13,136 in Garuda Construction Engineering on November 3, 2024 and sell it today you would lose (272.00) from holding Garuda Construction Engineering or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KEC International Limited vs. Garuda Construction Engineerin
Performance |
| Timeline |
| KEC International |
| Garuda Construction |
KEC International and Garuda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KEC International and Garuda Construction
The main advantage of trading using opposite KEC International and Garuda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KEC International position performs unexpectedly, Garuda Construction 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 Garuda Construction will offset losses from the drop in Garuda Construction's long position.| KEC International vs. Hindware Home Innovation | KEC International vs. Dhunseri Investments Limited | KEC International vs. Ami Organics Limited | KEC International vs. Jindal Poly Investment |
| Garuda Construction vs. Ravi Kumar Distilleries | Garuda Construction vs. Som Distilleries Breweries | Garuda Construction vs. Kohinoor Foods Limited | Garuda Construction vs. Univa Foods 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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