Correlation Between KPIT Technologies and MEDI ASSIST
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By analyzing existing cross correlation between KPIT Technologies Limited and MEDI ASSIST HEALTHCARE, you can compare the effects of market volatilities on KPIT Technologies and MEDI ASSIST 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 KPIT Technologies with a short position of MEDI ASSIST. Check out your portfolio center. Please also check ongoing floating volatility patterns of KPIT Technologies and MEDI ASSIST.
Diversification Opportunities for KPIT Technologies and MEDI ASSIST
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KPIT and MEDI is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding KPIT Technologies Limited and MEDI ASSIST HEALTHCARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDI ASSIST HEALTHCARE and KPIT Technologies 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 KPIT Technologies Limited are associated (or correlated) with MEDI ASSIST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDI ASSIST HEALTHCARE has no effect on the direction of KPIT Technologies i.e., KPIT Technologies and MEDI ASSIST go up and down completely randomly.
Pair Corralation between KPIT Technologies and MEDI ASSIST
Assuming the 90 days trading horizon KPIT Technologies Limited is expected to under-perform the MEDI ASSIST. In addition to that, KPIT Technologies is 1.3 times more volatile than MEDI ASSIST HEALTHCARE. It trades about -0.07 of its total potential returns per unit of risk. MEDI ASSIST HEALTHCARE is currently generating about -0.08 per unit of volatility. If you would invest 61,745 in MEDI ASSIST HEALTHCARE on September 2, 2024 and sell it today you would lose (2,150) from holding MEDI ASSIST HEALTHCARE or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KPIT Technologies Limited vs. MEDI ASSIST HEALTHCARE
Performance |
| Timeline |
| KPIT Technologies |
| MEDI ASSIST HEALTHCARE |
KPIT Technologies and MEDI ASSIST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KPIT Technologies and MEDI ASSIST
The main advantage of trading using opposite KPIT Technologies and MEDI ASSIST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KPIT Technologies position performs unexpectedly, MEDI ASSIST 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 MEDI ASSIST will offset losses from the drop in MEDI ASSIST's long position.| KPIT Technologies vs. Kaushalya Infrastructure Development | KPIT Technologies vs. Kingfa Science Technology | KPIT Technologies vs. Rico Auto Industries | KPIT Technologies vs. GACM Technologies Limited |
| MEDI ASSIST vs. V Mart Retail Limited | MEDI ASSIST vs. Praxis Home Retail | MEDI ASSIST vs. MIRC Electronics Limited | MEDI ASSIST vs. Baazar Style Retail |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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