Correlation Between Spencers Retail and Kohinoor Foods
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By analyzing existing cross correlation between Spencers Retail Limited and Kohinoor Foods Limited, you can compare the effects of market volatilities on Spencers Retail and Kohinoor Foods 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 Spencers Retail with a short position of Kohinoor Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Kohinoor Foods.
Diversification Opportunities for Spencers Retail and Kohinoor Foods
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spencers and Kohinoor is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and Kohinoor Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohinoor Foods and Spencers Retail 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 Spencers Retail Limited are associated (or correlated) with Kohinoor Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohinoor Foods has no effect on the direction of Spencers Retail i.e., Spencers Retail and Kohinoor Foods go up and down completely randomly.
Pair Corralation between Spencers Retail and Kohinoor Foods
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 0.89 times more return on investment than Kohinoor Foods. However, Spencers Retail Limited is 1.13 times less risky than Kohinoor Foods. It trades about 0.03 of its potential returns per unit of risk. Kohinoor Foods Limited is currently generating about 0.0 per unit of risk. If you would invest 7,075 in Spencers Retail Limited on August 29, 2024 and sell it today you would earn a total of 1,502 from holding Spencers Retail Limited or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Spencers Retail Limited vs. Kohinoor Foods Limited
Performance |
| Timeline |
| Spencers Retail |
| Kohinoor Foods |
Spencers Retail and Kohinoor Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Kohinoor Foods
The main advantage of trading using opposite Spencers Retail and Kohinoor Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, Kohinoor Foods 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 Kohinoor Foods will offset losses from the drop in Kohinoor Foods' long position.| Spencers Retail vs. Tata Consultancy Services | Spencers Retail vs. Quess Corp Limited | Spencers Retail vs. Reliance Industries Limited | Spencers Retail vs. SIS LIMITED |
| Kohinoor Foods vs. Reliance Industries Limited | Kohinoor Foods vs. State Bank of | Kohinoor Foods vs. HDFC Bank Limited | Kohinoor Foods vs. Oil Natural Gas |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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