Correlation Between Shaily Engineering and KPIT Technologies
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By analyzing existing cross correlation between Shaily Engineering Plastics and KPIT Technologies Limited, you can compare the effects of market volatilities on Shaily Engineering and KPIT Technologies 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 Shaily Engineering with a short position of KPIT Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaily Engineering and KPIT Technologies.
Diversification Opportunities for Shaily Engineering and KPIT Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shaily and KPIT is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shaily Engineering Plastics and KPIT Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPIT Technologies and Shaily Engineering 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 Shaily Engineering Plastics are associated (or correlated) with KPIT Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPIT Technologies has no effect on the direction of Shaily Engineering i.e., Shaily Engineering and KPIT Technologies go up and down completely randomly.
Pair Corralation between Shaily Engineering and KPIT Technologies
Assuming the 90 days trading horizon Shaily Engineering Plastics is expected to generate 1.32 times more return on investment than KPIT Technologies. However, Shaily Engineering is 1.32 times more volatile than KPIT Technologies Limited. It trades about 0.19 of its potential returns per unit of risk. KPIT Technologies Limited is currently generating about -0.09 per unit of risk. If you would invest 97,740 in Shaily Engineering Plastics on September 12, 2024 and sell it today you would earn a total of 47,160 from holding Shaily Engineering Plastics or generate 48.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Shaily Engineering Plastics vs. KPIT Technologies Limited
Performance |
| Timeline |
| Shaily Engineering |
| KPIT Technologies |
Shaily Engineering and KPIT Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaily Engineering and KPIT Technologies
The main advantage of trading using opposite Shaily Engineering and KPIT Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaily Engineering position performs unexpectedly, KPIT Technologies 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 KPIT Technologies will offset losses from the drop in KPIT Technologies' long position.| Shaily Engineering vs. NMDC Limited | Shaily Engineering vs. Steel Authority of | Shaily Engineering vs. Embassy Office Parks | Shaily Engineering vs. Gujarat Narmada Valley |
| KPIT Technologies vs. LLOYDS METALS AND | KPIT Technologies vs. Melstar Information Technologies | KPIT Technologies vs. Dev Information Technology | KPIT Technologies vs. Shivalik Bimetal Controls |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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