Correlation Between Keells Food and Renuka Agri
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By analyzing existing cross correlation between Keells Food Products and Renuka Agri Foods, you can compare the effects of market volatilities on Keells Food and Renuka Agri 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 Keells Food with a short position of Renuka Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keells Food and Renuka Agri.
Diversification Opportunities for Keells Food and Renuka Agri
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keells and Renuka is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Keells Food Products and Renuka Agri Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renuka Agri Foods and Keells Food 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 Keells Food Products are associated (or correlated) with Renuka Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renuka Agri Foods has no effect on the direction of Keells Food i.e., Keells Food and Renuka Agri go up and down completely randomly.
Pair Corralation between Keells Food and Renuka Agri
Assuming the 90 days trading horizon Keells Food Products is expected to generate 0.5 times more return on investment than Renuka Agri. However, Keells Food Products is 2.01 times less risky than Renuka Agri. It trades about 0.21 of its potential returns per unit of risk. Renuka Agri Foods is currently generating about -0.06 per unit of risk. If you would invest 16,400 in Keells Food Products on August 31, 2024 and sell it today you would earn a total of 700.00 from holding Keells Food Products or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Keells Food Products vs. Renuka Agri Foods
Performance |
| Timeline |
| Keells Food Products |
| Renuka Agri Foods |
Keells Food and Renuka Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keells Food and Renuka Agri
The main advantage of trading using opposite Keells Food and Renuka Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keells Food position performs unexpectedly, Renuka Agri 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 Renuka Agri will offset losses from the drop in Renuka Agri's long position.| Keells Food vs. Tal Lanka Hotels | Keells Food vs. RENUKA FOODS PLC | Keells Food vs. Nuwara Eliya Hotels | Keells Food vs. Kandy Hotels |
| Renuka Agri vs. HNB Finance | Renuka Agri vs. Prime Lands Residencies | Renuka Agri vs. Jat Holdings PLC | Renuka Agri vs. E M L |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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