Correlation Between Kilitch Drugs and Sakar Healthcare
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By analyzing existing cross correlation between Kilitch Drugs Limited and Sakar Healthcare Limited, you can compare the effects of market volatilities on Kilitch Drugs and Sakar Healthcare 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 Sakar Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilitch Drugs and Sakar Healthcare.
Diversification Opportunities for Kilitch Drugs and Sakar Healthcare
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kilitch and Sakar is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kilitch Drugs Limited and Sakar Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakar Healthcare 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 Sakar Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakar Healthcare has no effect on the direction of Kilitch Drugs i.e., Kilitch Drugs and Sakar Healthcare go up and down completely randomly.
Pair Corralation between Kilitch Drugs and Sakar Healthcare
Assuming the 90 days trading horizon Kilitch Drugs Limited is expected to generate 0.93 times more return on investment than Sakar Healthcare. However, Kilitch Drugs Limited is 1.08 times less risky than Sakar Healthcare. It trades about 0.03 of its potential returns per unit of risk. Sakar Healthcare Limited is currently generating about -0.03 per unit of risk. If you would invest 31,560 in Kilitch Drugs Limited on October 30, 2024 and sell it today you would earn a total of 455.00 from holding Kilitch Drugs Limited or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kilitch Drugs Limited vs. Sakar Healthcare Limited
Performance |
| Timeline |
| Kilitch Drugs Limited |
| Sakar Healthcare |
Kilitch Drugs and Sakar Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilitch Drugs and Sakar Healthcare
The main advantage of trading using opposite Kilitch Drugs and Sakar Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilitch Drugs position performs unexpectedly, Sakar Healthcare 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 Sakar Healthcare will offset losses from the drop in Sakar Healthcare's long position.| Kilitch Drugs vs. LT Technology Services | Kilitch Drugs vs. 63 moons technologies | Kilitch Drugs vs. Cybertech Systems And | Kilitch Drugs vs. Bharat Road Network |
| Sakar Healthcare vs. LLOYDS METALS AND | Sakar Healthcare vs. Dev Information Technology | Sakar Healthcare vs. Syrma SGS Technology | Sakar Healthcare vs. Sonata Software 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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