Correlation Between Kalyani Steels and Eros International
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By analyzing existing cross correlation between Kalyani Steels Limited and Eros International Media, you can compare the effects of market volatilities on Kalyani Steels and Eros International 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 Kalyani Steels with a short position of Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalyani Steels and Eros International.
Diversification Opportunities for Kalyani Steels and Eros International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kalyani and Eros is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kalyani Steels Limited and Eros International Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros International Media and Kalyani Steels 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 Kalyani Steels Limited are associated (or correlated) with Eros International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros International Media has no effect on the direction of Kalyani Steels i.e., Kalyani Steels and Eros International go up and down completely randomly.
Pair Corralation between Kalyani Steels and Eros International
Assuming the 90 days trading horizon Kalyani Steels Limited is expected to generate 0.86 times more return on investment than Eros International. However, Kalyani Steels Limited is 1.17 times less risky than Eros International. It trades about 0.08 of its potential returns per unit of risk. Eros International Media is currently generating about -0.03 per unit of risk. If you would invest 32,728 in Kalyani Steels Limited on August 25, 2024 and sell it today you would earn a total of 44,227 from holding Kalyani Steels Limited or generate 135.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Kalyani Steels Limited vs. Eros International Media
Performance |
| Timeline |
| Kalyani Steels |
| Eros International Media |
Kalyani Steels and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kalyani Steels and Eros International
The main advantage of trading using opposite Kalyani Steels and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kalyani Steels position performs unexpectedly, Eros International 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 Eros International will offset losses from the drop in Eros International's long position.| Kalyani Steels vs. NMDC Limited | Kalyani Steels vs. Steel Authority of | Kalyani Steels vs. Embassy Office Parks | Kalyani Steels vs. Gujarat Narmada Valley |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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