Correlation Between Kerur Holdings and Globrands
Can any of the company-specific risk be diversified away by investing in both Kerur Holdings and Globrands at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kerur Holdings and Globrands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kerur Holdings and Globrands Group, you can compare the effects of market volatilities on Kerur Holdings and Globrands 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 Kerur Holdings with a short position of Globrands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerur Holdings and Globrands.
Diversification Opportunities for Kerur Holdings and Globrands
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kerur and Globrands is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kerur Holdings and Globrands Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globrands Group and Kerur Holdings 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 Kerur Holdings are associated (or correlated) with Globrands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globrands Group has no effect on the direction of Kerur Holdings i.e., Kerur Holdings and Globrands go up and down completely randomly.
Pair Corralation between Kerur Holdings and Globrands
Assuming the 90 days trading horizon Kerur Holdings is expected to under-perform the Globrands. But the stock apears to be less risky and, when comparing its historical volatility, Kerur Holdings is 1.03 times less risky than Globrands. The stock trades about -0.01 of its potential returns per unit of risk. The Globrands Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,119,704 in Globrands Group on August 24, 2024 and sell it today you would earn a total of 1,303,296 from holding Globrands Group or generate 41.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kerur Holdings vs. Globrands Group
Performance |
| Timeline |
| Kerur Holdings |
| Globrands Group |
Kerur Holdings and Globrands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kerur Holdings and Globrands
The main advantage of trading using opposite Kerur Holdings and Globrands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kerur Holdings position performs unexpectedly, Globrands 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 Globrands will offset losses from the drop in Globrands' long position.| Kerur Holdings vs. Neto ME Holdings | Kerur Holdings vs. Scope Metals Group | Kerur Holdings vs. Delek Automotive Systems | Kerur Holdings vs. Aryt Industries |
| Globrands vs. Neto ME Holdings | Globrands vs. Delek Automotive Systems | Globrands vs. Kerur Holdings | Globrands vs. Ram On Investments and |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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