Correlation Between Kewal Kiran and Great Eastern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kewal Kiran Clothing and The Great Eastern, you can compare the effects of market volatilities on Kewal Kiran and Great Eastern 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 Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kewal Kiran and Great Eastern.
Diversification Opportunities for Kewal Kiran and Great Eastern
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kewal and Great is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kewal Kiran Clothing and The Great Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Eastern 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 Great Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Eastern has no effect on the direction of Kewal Kiran i.e., Kewal Kiran and Great Eastern go up and down completely randomly.
Pair Corralation between Kewal Kiran and Great Eastern
Assuming the 90 days trading horizon Kewal Kiran Clothing is expected to generate 0.57 times more return on investment than Great Eastern. However, Kewal Kiran Clothing is 1.76 times less risky than Great Eastern. It trades about 0.17 of its potential returns per unit of risk. The Great Eastern is currently generating about -0.07 per unit of risk. If you would invest 61,015 in Kewal Kiran Clothing on September 13, 2024 and sell it today you would earn a total of 2,365 from holding Kewal Kiran Clothing or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kewal Kiran Clothing vs. The Great Eastern
Performance |
| Timeline |
| Kewal Kiran Clothing |
| Great Eastern |
Kewal Kiran and Great Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kewal Kiran and Great Eastern
The main advantage of trading using opposite Kewal Kiran and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kewal Kiran position performs unexpectedly, Great Eastern 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 Great Eastern will offset losses from the drop in Great Eastern's long position.| Kewal Kiran vs. KIOCL Limited | Kewal Kiran vs. Spentex Industries Limited | Kewal Kiran vs. Punjab Sind Bank | Kewal Kiran vs. ITI Limited |
| Great Eastern vs. Sportking India Limited | Great Eastern vs. DMCC SPECIALITY CHEMICALS | Great Eastern vs. Total Transport Systems | Great Eastern vs. Chambal Fertilizers Chemicals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |