Correlation Between Kilitch Drugs and Industrial Investment
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By analyzing existing cross correlation between Kilitch Drugs Limited and Industrial Investment Trust, you can compare the effects of market volatilities on Kilitch Drugs and Industrial Investment 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 Kilitch Drugs with a short position of Industrial Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilitch Drugs and Industrial Investment.
Diversification Opportunities for Kilitch Drugs and Industrial Investment
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kilitch and Industrial is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kilitch Drugs Limited and Industrial Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Investment and Kilitch Drugs 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 Kilitch Drugs Limited are associated (or correlated) with Industrial Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Investment has no effect on the direction of Kilitch Drugs i.e., Kilitch Drugs and Industrial Investment go up and down completely randomly.
Pair Corralation between Kilitch Drugs and Industrial Investment
Assuming the 90 days trading horizon Kilitch Drugs is expected to generate 3.0 times less return on investment than Industrial Investment. But when comparing it to its historical volatility, Kilitch Drugs Limited is 1.34 times less risky than Industrial Investment. It trades about 0.06 of its potential returns per unit of risk. Industrial Investment Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,375 in Industrial Investment Trust on August 27, 2024 and sell it today you would earn a total of 29,130 from holding Industrial Investment Trust or generate 280.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Kilitch Drugs Limited vs. Industrial Investment Trust
Performance |
| Timeline |
| Kilitch Drugs Limited |
| Industrial Investment |
Kilitch Drugs and Industrial Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilitch Drugs and Industrial Investment
The main advantage of trading using opposite Kilitch Drugs and Industrial Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilitch Drugs position performs unexpectedly, Industrial Investment 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 Industrial Investment will offset losses from the drop in Industrial Investment's long position.| Kilitch Drugs vs. Kingfa Science Technology | Kilitch Drugs vs. Rico Auto Industries | Kilitch Drugs vs. GACM Technologies Limited | Kilitch Drugs vs. COSMO FIRST LIMITED |
| Industrial Investment vs. Reliance Industries Limited | Industrial Investment vs. Life Insurance | Industrial Investment vs. Indian Oil | Industrial Investment vs. Oil Natural Gas |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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