Correlation Between Kilitch Drugs and Indraprastha Medical
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By analyzing existing cross correlation between Kilitch Drugs Limited and Indraprastha Medical, you can compare the effects of market volatilities on Kilitch Drugs and Indraprastha Medical 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 Indraprastha Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilitch Drugs and Indraprastha Medical.
Diversification Opportunities for Kilitch Drugs and Indraprastha Medical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kilitch and Indraprastha is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kilitch Drugs Limited and Indraprastha Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indraprastha Medical 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 Indraprastha Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indraprastha Medical has no effect on the direction of Kilitch Drugs i.e., Kilitch Drugs and Indraprastha Medical go up and down completely randomly.
Pair Corralation between Kilitch Drugs and Indraprastha Medical
Assuming the 90 days trading horizon Kilitch Drugs is expected to generate 2.82 times less return on investment than Indraprastha Medical. But when comparing it to its historical volatility, Kilitch Drugs Limited is 1.04 times less risky than Indraprastha Medical. It trades about 0.03 of its potential returns per unit of risk. Indraprastha Medical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 41,250 in Indraprastha Medical on August 29, 2024 and sell it today you would earn a total of 1,875 from holding Indraprastha Medical or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kilitch Drugs Limited vs. Indraprastha Medical
Performance |
| Timeline |
| Kilitch Drugs Limited |
| Indraprastha Medical |
Kilitch Drugs and Indraprastha Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilitch Drugs and Indraprastha Medical
The main advantage of trading using opposite Kilitch Drugs and Indraprastha Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilitch Drugs position performs unexpectedly, Indraprastha Medical 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 Indraprastha Medical will offset losses from the drop in Indraprastha Medical's long position.| Kilitch Drugs vs. India Glycols Limited | Kilitch Drugs vs. Indo Borax Chemicals | Kilitch Drugs vs. Kingfa Science Technology | Kilitch Drugs vs. Alkali Metals Limited |
| Indraprastha Medical vs. India Glycols Limited | Indraprastha Medical vs. Indo Borax Chemicals | Indraprastha Medical vs. Kingfa Science Technology | Indraprastha Medical vs. Alkali Metals 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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