Correlation Between Salzer Electronics and Kalyani Steels
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By analyzing existing cross correlation between Salzer Electronics Limited and Kalyani Steels Limited, you can compare the effects of market volatilities on Salzer Electronics 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 Salzer Electronics with a short position of Kalyani Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Kalyani Steels.
Diversification Opportunities for Salzer Electronics and Kalyani Steels
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Salzer and Kalyani is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Kalyani Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalyani Steels 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 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 Salzer Electronics i.e., Salzer Electronics and Kalyani Steels go up and down completely randomly.
Pair Corralation between Salzer Electronics and Kalyani Steels
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 1.55 times more return on investment than Kalyani Steels. However, Salzer Electronics is 1.55 times more volatile than Kalyani Steels Limited. It trades about -0.07 of its potential returns per unit of risk. Kalyani Steels Limited is currently generating about -0.51 per unit of risk. If you would invest 137,210 in Salzer Electronics Limited on November 1, 2024 and sell it today you would lose (11,050) from holding Salzer Electronics Limited or give up 8.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Kalyani Steels Limited
Performance |
| Timeline |
| Salzer Electronics |
| Kalyani Steels |
Salzer Electronics and Kalyani Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Kalyani Steels
The main advantage of trading using opposite Salzer Electronics and Kalyani Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics 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.| Salzer Electronics vs. Praxis Home Retail | Salzer Electronics vs. Chembond Chemicals | Salzer Electronics vs. DMCC SPECIALITY CHEMICALS | Salzer Electronics vs. Southern Petrochemicals Industries |
| Kalyani Steels vs. Kotak Mahindra Bank | Kalyani Steels vs. ideaForge Technology Limited | Kalyani Steels vs. Salzer Electronics Limited | Kalyani Steels vs. Cambridge Technology Enterprises |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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