Correlation Between Kohinoor Foods and Coal India
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By analyzing existing cross correlation between Kohinoor Foods Limited and Coal India Limited, you can compare the effects of market volatilities on Kohinoor Foods and Coal India 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 Kohinoor Foods with a short position of Coal India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and Coal India.
Diversification Opportunities for Kohinoor Foods and Coal India
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kohinoor and Coal is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and Coal India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coal India Limited and Kohinoor Foods 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 Kohinoor Foods Limited are associated (or correlated) with Coal India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coal India Limited has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and Coal India go up and down completely randomly.
Pair Corralation between Kohinoor Foods and Coal India
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to under-perform the Coal India. In addition to that, Kohinoor Foods is 1.2 times more volatile than Coal India Limited. It trades about -0.27 of its total potential returns per unit of risk. Coal India Limited is currently generating about 0.04 per unit of volatility. If you would invest 38,050 in Coal India Limited on October 28, 2024 and sell it today you would earn a total of 390.00 from holding Coal India Limited or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. Coal India Limited
Performance |
| Timeline |
| Kohinoor Foods |
| Coal India Limited |
Kohinoor Foods and Coal India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and Coal India
The main advantage of trading using opposite Kohinoor Foods and Coal India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, Coal India 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 Coal India will offset losses from the drop in Coal India's long position.| Kohinoor Foods vs. Gangotri Textiles Limited | Kohinoor Foods vs. Hemisphere Properties India | Kohinoor Foods vs. Kingfa Science Technology | Kohinoor Foods vs. Rico Auto Industries |
| Coal India vs. Salzer Electronics Limited | Coal India vs. Silgo Retail Limited | Coal India vs. Elin Electronics Limited | Coal India vs. Mask 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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