Correlation Between Selan Exploration and Kilitch Drugs
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By analyzing existing cross correlation between Selan Exploration Technology and Kilitch Drugs Limited, you can compare the effects of market volatilities on Selan Exploration and Kilitch Drugs 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 Selan Exploration with a short position of Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selan Exploration and Kilitch Drugs.
Diversification Opportunities for Selan Exploration and Kilitch Drugs
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Selan and Kilitch is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Selan Exploration Technology and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs Limited and Selan Exploration 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 Selan Exploration Technology are associated (or correlated) with Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of Selan Exploration i.e., Selan Exploration and Kilitch Drugs go up and down completely randomly.
Pair Corralation between Selan Exploration and Kilitch Drugs
Assuming the 90 days trading horizon Selan Exploration Technology is expected to under-perform the Kilitch Drugs. In addition to that, Selan Exploration is 1.58 times more volatile than Kilitch Drugs Limited. It trades about -0.2 of its total potential returns per unit of risk. Kilitch Drugs Limited is currently generating about 0.16 per unit of volatility. If you would invest 32,870 in Kilitch Drugs Limited on October 12, 2024 and sell it today you would earn a total of 1,640 from holding Kilitch Drugs Limited or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selan Exploration Technology vs. Kilitch Drugs Limited
Performance |
| Timeline |
| Selan Exploration |
| Kilitch Drugs Limited |
Selan Exploration and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selan Exploration and Kilitch Drugs
The main advantage of trading using opposite Selan Exploration and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selan Exploration position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' long position.| Selan Exploration vs. Diligent Media | Selan Exploration vs. Kohinoor Foods Limited | Selan Exploration vs. Next Mediaworks Limited | Selan Exploration vs. Imagicaaworld Entertainment Limited |
| Kilitch Drugs vs. PYRAMID TECHNOPLAST ORD | Kilitch Drugs vs. Touchwood Entertainment Limited | Kilitch Drugs vs. Selan Exploration Technology | Kilitch Drugs vs. Zee Entertainment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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