Correlation Between Salzer Electronics and Kewal Kiran
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By analyzing existing cross correlation between Salzer Electronics Limited and Kewal Kiran Clothing, you can compare the effects of market volatilities on Salzer Electronics and Kewal Kiran 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 Salzer Electronics with a short position of Kewal Kiran. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Kewal Kiran.
Diversification Opportunities for Salzer Electronics and Kewal Kiran
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salzer and Kewal is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Kewal Kiran Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kewal Kiran Clothing and Salzer Electronics 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 Salzer Electronics Limited are associated (or correlated) with Kewal Kiran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kewal Kiran Clothing has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Kewal Kiran go up and down completely randomly.
Pair Corralation between Salzer Electronics and Kewal Kiran
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 1.9 times more return on investment than Kewal Kiran. However, Salzer Electronics is 1.9 times more volatile than Kewal Kiran Clothing. It trades about 0.12 of its potential returns per unit of risk. Kewal Kiran Clothing is currently generating about -0.2 per unit of risk. If you would invest 111,790 in Salzer Electronics Limited on October 30, 2024 and sell it today you would earn a total of 20,280 from holding Salzer Electronics Limited or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Kewal Kiran Clothing
Performance |
| Timeline |
| Salzer Electronics |
| Kewal Kiran Clothing |
Salzer Electronics and Kewal Kiran Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Kewal Kiran
The main advantage of trading using opposite Salzer Electronics and Kewal Kiran positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Kewal Kiran 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 Kewal Kiran will offset losses from the drop in Kewal Kiran's long position.| Salzer Electronics vs. WESTLIFE FOODWORLD LIMITED | Salzer Electronics vs. Compucom Software Limited | Salzer Electronics vs. Laxmi Organic Industries | Salzer Electronics vs. Ami Organics Limited |
| Kewal Kiran vs. Kingfa Science Technology | Kewal Kiran vs. Rico Auto Industries | Kewal Kiran vs. COSMO FIRST LIMITED | Kewal Kiran vs. Tribhovandas Bhimji Zaveri |
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 CEOs Directory module to screen CEOs from public companies around the world.
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