Correlation Between Kewal Kiran and Bajaj Holdings
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By analyzing existing cross correlation between Kewal Kiran Clothing and Bajaj Holdings Investment, you can compare the effects of market volatilities on Kewal Kiran and Bajaj Holdings 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 Kewal Kiran with a short position of Bajaj Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kewal Kiran and Bajaj Holdings.
Diversification Opportunities for Kewal Kiran and Bajaj Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kewal and Bajaj is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kewal Kiran Clothing and Bajaj Holdings Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Holdings Investment and Kewal Kiran 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 Kewal Kiran Clothing are associated (or correlated) with Bajaj Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Holdings Investment has no effect on the direction of Kewal Kiran i.e., Kewal Kiran and Bajaj Holdings go up and down completely randomly.
Pair Corralation between Kewal Kiran and Bajaj Holdings
Assuming the 90 days trading horizon Kewal Kiran is expected to generate 2.43 times less return on investment than Bajaj Holdings. But when comparing it to its historical volatility, Kewal Kiran Clothing is 1.01 times less risky than Bajaj Holdings. It trades about 0.03 of its potential returns per unit of risk. Bajaj Holdings Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 616,077 in Bajaj Holdings Investment on November 27, 2024 and sell it today you would earn a total of 584,108 from holding Bajaj Holdings Investment or generate 94.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Kewal Kiran Clothing vs. Bajaj Holdings Investment
Performance |
| Timeline |
| Kewal Kiran Clothing |
| Bajaj Holdings Investment |
Kewal Kiran and Bajaj Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kewal Kiran and Bajaj Holdings
The main advantage of trading using opposite Kewal Kiran and Bajaj Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kewal Kiran position performs unexpectedly, Bajaj Holdings 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 Bajaj Holdings will offset losses from the drop in Bajaj Holdings' long position.| Kewal Kiran vs. Megastar Foods Limited | Kewal Kiran vs. R S Software | Kewal Kiran vs. Computer Age Management | Kewal Kiran vs. Sintex Plastics Technology |
| Bajaj Holdings vs. Sarthak Metals Limited | Bajaj Holdings vs. Hathway Cable Datacom | Bajaj Holdings vs. Bikaji Foods International | Bajaj Holdings vs. Univa Foods 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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