Correlation Between MRF and Kaynes Technology
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By analyzing existing cross correlation between MRF Limited and Kaynes Technology India, you can compare the effects of market volatilities on MRF and Kaynes Technology 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 MRF with a short position of Kaynes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Kaynes Technology.
Diversification Opportunities for MRF and Kaynes Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MRF and Kaynes is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Kaynes Technology India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaynes Technology India and MRF 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 MRF Limited are associated (or correlated) with Kaynes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaynes Technology India has no effect on the direction of MRF i.e., MRF and Kaynes Technology go up and down completely randomly.
Pair Corralation between MRF and Kaynes Technology
Assuming the 90 days trading horizon MRF is expected to generate 5.69 times less return on investment than Kaynes Technology. But when comparing it to its historical volatility, MRF Limited is 2.39 times less risky than Kaynes Technology. It trades about 0.06 of its potential returns per unit of risk. Kaynes Technology India is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 149,445 in Kaynes Technology India on September 1, 2024 and sell it today you would earn a total of 449,300 from holding Kaynes Technology India or generate 300.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Kaynes Technology India
Performance |
| Timeline |
| MRF Limited |
| Kaynes Technology India |
MRF and Kaynes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Kaynes Technology
The main advantage of trading using opposite MRF and Kaynes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Kaynes Technology 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 Kaynes Technology will offset losses from the drop in Kaynes Technology's long position.| MRF vs. Osia Hyper Retail | MRF vs. BF Utilities Limited | MRF vs. Sambhaav Media Limited | MRF vs. Touchwood Entertainment Limited |
| Kaynes Technology vs. The Indian Hotels | Kaynes Technology vs. EIH Associated Hotels | Kaynes Technology vs. ROUTE MOBILE LIMITED | Kaynes Technology vs. Tata Communications 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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