Correlation Between MAS Financial and Kalyani Steels
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By analyzing existing cross correlation between MAS Financial Services and Kalyani Steels Limited, you can compare the effects of market volatilities on MAS Financial and Kalyani Steels 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 MAS Financial with a short position of Kalyani Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Financial and Kalyani Steels.
Diversification Opportunities for MAS Financial and Kalyani Steels
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MAS and Kalyani is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial Services and Kalyani Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalyani Steels and MAS Financial 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 MAS Financial Services are associated (or correlated) with Kalyani Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalyani Steels has no effect on the direction of MAS Financial i.e., MAS Financial and Kalyani Steels go up and down completely randomly.
Pair Corralation between MAS Financial and Kalyani Steels
Assuming the 90 days trading horizon MAS Financial Services is expected to generate 0.73 times more return on investment than Kalyani Steels. However, MAS Financial Services is 1.38 times less risky than Kalyani Steels. It trades about -0.04 of its potential returns per unit of risk. Kalyani Steels Limited is currently generating about -0.18 per unit of risk. If you would invest 23,950 in MAS Financial Services on November 28, 2024 and sell it today you would lose (575.00) from holding MAS Financial Services or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAS Financial Services vs. Kalyani Steels Limited
Performance |
| Timeline |
| MAS Financial Services |
| Kalyani Steels |
MAS Financial and Kalyani Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Financial and Kalyani Steels
The main advantage of trading using opposite MAS Financial and Kalyani Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Financial position performs unexpectedly, Kalyani Steels 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 Kalyani Steels will offset losses from the drop in Kalyani Steels' long position.| MAS Financial vs. Consolidated Construction Consortium | MAS Financial vs. KNR Constructions Limited | MAS Financial vs. Sintex Plastics Technology | MAS Financial vs. Compucom Software Limited |
| Kalyani Steels vs. Spencers Retail Limited | Kalyani Steels vs. 21st Century Management | Kalyani Steels vs. Computer Age Management | Kalyani Steels vs. HDFC Asset Management |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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