Correlation Between KNR Constructions and ADF Foods
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By analyzing existing cross correlation between KNR Constructions Limited and ADF Foods Limited, you can compare the effects of market volatilities on KNR Constructions and ADF Foods 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 KNR Constructions with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNR Constructions and ADF Foods.
Diversification Opportunities for KNR Constructions and ADF Foods
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KNR and ADF is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding KNR Constructions Limited and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and KNR Constructions 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 KNR Constructions Limited are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of KNR Constructions i.e., KNR Constructions and ADF Foods go up and down completely randomly.
Pair Corralation between KNR Constructions and ADF Foods
Assuming the 90 days trading horizon KNR Constructions Limited is expected to generate 1.08 times more return on investment than ADF Foods. However, KNR Constructions is 1.08 times more volatile than ADF Foods Limited. It trades about 0.18 of its potential returns per unit of risk. ADF Foods Limited is currently generating about 0.13 per unit of risk. If you would invest 28,675 in KNR Constructions Limited on August 27, 2024 and sell it today you would earn a total of 2,795 from holding KNR Constructions Limited or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KNR Constructions Limited vs. ADF Foods Limited
Performance |
| Timeline |
| KNR Constructions |
| ADF Foods Limited |
KNR Constructions and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNR Constructions and ADF Foods
The main advantage of trading using opposite KNR Constructions and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNR Constructions position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| KNR Constructions vs. Indian Railway Finance | KNR Constructions vs. Cholamandalam Financial Holdings | KNR Constructions vs. Reliance Industries Limited | KNR Constructions vs. Tata Consultancy Services |
| ADF Foods vs. Reliance Industries Limited | ADF Foods vs. State Bank of | ADF Foods vs. HDFC Bank Limited | ADF Foods vs. Oil Natural Gas |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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