Correlation Between Kohinoor Foods and Indian Metals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kohinoor Foods Limited and Indian Metals Ferro, you can compare the effects of market volatilities on Kohinoor Foods and Indian Metals 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 Indian Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and Indian Metals.
Diversification Opportunities for Kohinoor Foods and Indian Metals
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kohinoor and Indian is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and Indian Metals Ferro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Metals Ferro 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 Indian Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Metals Ferro has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and Indian Metals go up and down completely randomly.
Pair Corralation between Kohinoor Foods and Indian Metals
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to generate 0.6 times more return on investment than Indian Metals. However, Kohinoor Foods Limited is 1.68 times less risky than Indian Metals. It trades about -0.12 of its potential returns per unit of risk. Indian Metals Ferro is currently generating about -0.24 per unit of risk. If you would invest 4,126 in Kohinoor Foods Limited on November 7, 2024 and sell it today you would lose (255.00) from holding Kohinoor Foods Limited or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. Indian Metals Ferro
Performance |
| Timeline |
| Kohinoor Foods |
| Indian Metals Ferro |
Kohinoor Foods and Indian Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and Indian Metals
The main advantage of trading using opposite Kohinoor Foods and Indian Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, Indian Metals 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 Indian Metals will offset losses from the drop in Indian Metals' long position.| Kohinoor Foods vs. DCB Bank Limited | Kohinoor Foods vs. UTI Asset Management | Kohinoor Foods vs. IDFC First Bank | Kohinoor Foods vs. Union Bank of |
| Indian Metals vs. SINCLAIRS HOTELS ORD | Indian Metals vs. Viceroy Hotels Limited | Indian Metals vs. Lemon Tree Hotels | Indian Metals vs. Hindustan Copper 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |