Correlation Between Sukhjit Starch and Kilitch Drugs
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By analyzing existing cross correlation between Sukhjit Starch Chemicals and Kilitch Drugs Limited, you can compare the effects of market volatilities on Sukhjit Starch 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 Sukhjit Starch with a short position of Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sukhjit Starch and Kilitch Drugs.
Diversification Opportunities for Sukhjit Starch and Kilitch Drugs
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sukhjit and Kilitch is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sukhjit Starch Chemicals 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 Sukhjit Starch 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 Sukhjit Starch Chemicals 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 Sukhjit Starch i.e., Sukhjit Starch and Kilitch Drugs go up and down completely randomly.
Pair Corralation between Sukhjit Starch and Kilitch Drugs
Assuming the 90 days trading horizon Sukhjit Starch Chemicals is expected to generate 0.91 times more return on investment than Kilitch Drugs. However, Sukhjit Starch Chemicals is 1.1 times less risky than Kilitch Drugs. It trades about -0.02 of its potential returns per unit of risk. Kilitch Drugs Limited is currently generating about -0.02 per unit of risk. If you would invest 27,541 in Sukhjit Starch Chemicals on November 9, 2024 and sell it today you would lose (4,752) from holding Sukhjit Starch Chemicals or give up 17.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Sukhjit Starch Chemicals vs. Kilitch Drugs Limited
Performance |
| Timeline |
| Sukhjit Starch Chemicals |
| Kilitch Drugs Limited |
Sukhjit Starch and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sukhjit Starch and Kilitch Drugs
The main advantage of trading using opposite Sukhjit Starch and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sukhjit Starch 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.| Sukhjit Starch vs. Reliance Communications Limited | Sukhjit Starch vs. Tamilnadu Telecommunication Limited | Sukhjit Starch vs. One 97 Communications | Sukhjit Starch vs. Megastar Foods Limited |
| Kilitch Drugs vs. Associated Alcohols Breweries | Kilitch Drugs vs. Varun Beverages Limited | Kilitch Drugs vs. Kavveri Telecom Products | Kilitch Drugs vs. Usha Martin Education |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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