Correlation Between KIOCL and State Trading
Specify exactly 2 symbols:
By analyzing existing cross correlation between KIOCL Limited and The State Trading, you can compare the effects of market volatilities on KIOCL and State Trading 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 State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIOCL and State Trading.
Diversification Opportunities for KIOCL and State Trading
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KIOCL and State is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding KIOCL Limited and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading 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 State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of KIOCL i.e., KIOCL and State Trading go up and down completely randomly.
Pair Corralation between KIOCL and State Trading
Assuming the 90 days trading horizon KIOCL Limited is expected to generate 1.09 times more return on investment than State Trading. However, KIOCL is 1.09 times more volatile than The State Trading. It trades about 0.09 of its potential returns per unit of risk. The State Trading is currently generating about 0.04 per unit of risk. If you would invest 34,165 in KIOCL Limited on August 31, 2024 and sell it today you would earn a total of 2,610 from holding KIOCL Limited or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIOCL Limited vs. The State Trading
Performance |
| Timeline |
| KIOCL Limited |
| State Trading |
KIOCL and State Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIOCL and State Trading
The main advantage of trading using opposite KIOCL and State Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIOCL position performs unexpectedly, State Trading 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 State Trading will offset losses from the drop in State Trading's long position.| KIOCL vs. Hisar Metal Industries | KIOCL vs. Sonata Software Limited | KIOCL vs. Sintex Plastics Technology | KIOCL vs. Nucleus Software Exports |
| State Trading vs. Kingfa Science Technology | State Trading vs. GTL Limited | State Trading vs. Indo Amines Limited | State Trading vs. HDFC Mutual Fund |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |