Correlation Between KIOCL and Elgi Rubber
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By analyzing existing cross correlation between KIOCL Limited and Elgi Rubber, you can compare the effects of market volatilities on KIOCL and Elgi Rubber 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 KIOCL with a short position of Elgi Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIOCL and Elgi Rubber.
Diversification Opportunities for KIOCL and Elgi Rubber
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KIOCL and Elgi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding KIOCL Limited and Elgi Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elgi Rubber and KIOCL 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 KIOCL Limited are associated (or correlated) with Elgi Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elgi Rubber has no effect on the direction of KIOCL i.e., KIOCL and Elgi Rubber go up and down completely randomly.
Pair Corralation between KIOCL and Elgi Rubber
Assuming the 90 days trading horizon KIOCL is expected to generate 1.36 times less return on investment than Elgi Rubber. But when comparing it to its historical volatility, KIOCL Limited is 1.33 times less risky than Elgi Rubber. It trades about 0.11 of its potential returns per unit of risk. Elgi Rubber is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,829 in Elgi Rubber on September 12, 2024 and sell it today you would earn a total of 1,088 from holding Elgi Rubber or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIOCL Limited vs. Elgi Rubber
Performance |
| Timeline |
| KIOCL Limited |
| Elgi Rubber |
KIOCL and Elgi Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIOCL and Elgi Rubber
The main advantage of trading using opposite KIOCL and Elgi Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIOCL position performs unexpectedly, Elgi Rubber 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 Elgi Rubber will offset losses from the drop in Elgi Rubber's long position.| KIOCL vs. Steel Authority of | KIOCL vs. Embassy Office Parks | KIOCL vs. Indian Metals Ferro | KIOCL vs. JTL Industries |
| Elgi Rubber vs. Hemisphere Properties India | Elgi Rubber vs. Indo Borax Chemicals | Elgi Rubber vs. Kingfa Science Technology | Elgi Rubber 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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