Correlation Between Kohinoor Foods and GM Breweries
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By analyzing existing cross correlation between Kohinoor Foods Limited and GM Breweries Limited, you can compare the effects of market volatilities on Kohinoor Foods and GM Breweries 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 GM Breweries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and GM Breweries.
Diversification Opportunities for Kohinoor Foods and GM Breweries
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kohinoor and GMBREW is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and GM Breweries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM Breweries 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 GM Breweries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM Breweries Limited has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and GM Breweries go up and down completely randomly.
Pair Corralation between Kohinoor Foods and GM Breweries
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to generate 2.1 times more return on investment than GM Breweries. However, Kohinoor Foods is 2.1 times more volatile than GM Breweries Limited. It trades about 0.0 of its potential returns per unit of risk. GM Breweries Limited is currently generating about -0.17 per unit of risk. If you would invest 4,125 in Kohinoor Foods Limited on October 14, 2024 and sell it today you would lose (107.00) from holding Kohinoor Foods Limited or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. GM Breweries Limited
Performance |
| Timeline |
| Kohinoor Foods |
| GM Breweries Limited |
Kohinoor Foods and GM Breweries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and GM Breweries
The main advantage of trading using opposite Kohinoor Foods and GM Breweries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, GM Breweries 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 GM Breweries will offset losses from the drop in GM Breweries' long position.| Kohinoor Foods vs. Hisar Metal Industries | Kohinoor Foods vs. R S Software | Kohinoor Foods vs. Cambridge Technology Enterprises | Kohinoor Foods vs. Nucleus Software Exports |
| GM Breweries vs. Agro Tech Foods | GM Breweries vs. Patanjali Foods Limited | GM Breweries vs. Can Fin Homes | GM Breweries vs. Kohinoor 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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