Correlation Between KIOCL and Sasken Technologies
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By analyzing existing cross correlation between KIOCL Limited and Sasken Technologies Limited, you can compare the effects of market volatilities on KIOCL and Sasken Technologies 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 Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIOCL and Sasken Technologies.
Diversification Opportunities for KIOCL and Sasken Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KIOCL and Sasken is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding KIOCL Limited and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies 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 Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of KIOCL i.e., KIOCL and Sasken Technologies go up and down completely randomly.
Pair Corralation between KIOCL and Sasken Technologies
Assuming the 90 days trading horizon KIOCL is expected to generate 1.53 times less return on investment than Sasken Technologies. In addition to that, KIOCL is 1.56 times more volatile than Sasken Technologies Limited. It trades about 0.16 of its total potential returns per unit of risk. Sasken Technologies Limited is currently generating about 0.38 per unit of volatility. If you would invest 172,895 in Sasken Technologies Limited on September 5, 2024 and sell it today you would earn a total of 47,760 from holding Sasken Technologies Limited or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIOCL Limited vs. Sasken Technologies Limited
Performance |
| Timeline |
| KIOCL Limited |
| Sasken Technologies |
KIOCL and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIOCL and Sasken Technologies
The main advantage of trading using opposite KIOCL and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIOCL position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.| KIOCL vs. The Hi Tech Gears | KIOCL vs. Hemisphere Properties India | KIOCL vs. S P Apparels | KIOCL vs. Ravi Kumar Distilleries |
| Sasken Technologies vs. POWERGRID Infrastructure Investment | Sasken Technologies vs. ILFS Investment Managers | Sasken Technologies vs. The Investment Trust | Sasken Technologies vs. SIL Investments 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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