Correlation Between Kohinoor Foods and Selan Exploration
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By analyzing existing cross correlation between Kohinoor Foods Limited and Selan Exploration Technology, you can compare the effects of market volatilities on Kohinoor Foods and Selan Exploration 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 Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and Selan Exploration.
Diversification Opportunities for Kohinoor Foods and Selan Exploration
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kohinoor and Selan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration 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 Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and Selan Exploration go up and down completely randomly.
Pair Corralation between Kohinoor Foods and Selan Exploration
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to generate 0.54 times more return on investment than Selan Exploration. However, Kohinoor Foods Limited is 1.85 times less risky than Selan Exploration. It trades about -0.06 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about -0.07 per unit of risk. If you would invest 4,095 in Kohinoor Foods Limited on September 24, 2024 and sell it today you would lose (61.00) from holding Kohinoor Foods Limited or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. Selan Exploration Technology
Performance |
| Timeline |
| Kohinoor Foods |
| Selan Exploration |
Kohinoor Foods and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and Selan Exploration
The main advantage of trading using opposite Kohinoor Foods and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Kohinoor Foods vs. Reliance Industries Limited | Kohinoor Foods vs. State Bank of | Kohinoor Foods vs. HDFC Bank Limited | Kohinoor Foods vs. Oil Natural Gas |
| Selan Exploration vs. Patanjali Foods Limited | Selan Exploration vs. Kohinoor Foods Limited | Selan Exploration vs. Sarveshwar Foods Limited | Selan Exploration vs. Univa 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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