Correlation Between Kohinoor Foods and SAL Steel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kohinoor Foods Limited and SAL Steel Limited, you can compare the effects of market volatilities on Kohinoor Foods and SAL Steel 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 SAL Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and SAL Steel.
Diversification Opportunities for Kohinoor Foods and SAL Steel
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kohinoor and SAL is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and SAL Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAL Steel 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 SAL Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAL Steel Limited has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and SAL Steel go up and down completely randomly.
Pair Corralation between Kohinoor Foods and SAL Steel
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to under-perform the SAL Steel. In addition to that, Kohinoor Foods is 1.06 times more volatile than SAL Steel Limited. It trades about -0.01 of its total potential returns per unit of risk. SAL Steel Limited is currently generating about 0.03 per unit of volatility. If you would invest 1,655 in SAL Steel Limited on November 1, 2024 and sell it today you would earn a total of 372.00 from holding SAL Steel Limited or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. SAL Steel Limited
Performance |
| Timeline |
| Kohinoor Foods |
| SAL Steel Limited |
Kohinoor Foods and SAL Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and SAL Steel
The main advantage of trading using opposite Kohinoor Foods and SAL Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, SAL Steel 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 SAL Steel will offset losses from the drop in SAL Steel's long position.| Kohinoor Foods vs. Hindustan Construction | Kohinoor Foods vs. Bajaj Holdings Investment | Kohinoor Foods vs. Khaitan Chemicals Fertilizers | Kohinoor Foods vs. Total Transport Systems |
| SAL Steel vs. KNR Constructions Limited | SAL Steel vs. Oriental Hotels Limited | SAL Steel vs. Juniper Hotels | SAL Steel vs. Rajnandini Metal 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
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |