Correlation Between Xpro India and Kalyani Steels
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By analyzing existing cross correlation between Xpro India Limited and Kalyani Steels Limited, you can compare the effects of market volatilities on Xpro India 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 Xpro India with a short position of Kalyani Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xpro India and Kalyani Steels.
Diversification Opportunities for Xpro India and Kalyani Steels
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xpro and Kalyani is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xpro India 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 Xpro India 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 Xpro India 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 Xpro India i.e., Xpro India and Kalyani Steels go up and down completely randomly.
Pair Corralation between Xpro India and Kalyani Steels
Assuming the 90 days trading horizon Xpro India Limited is expected to generate 1.39 times more return on investment than Kalyani Steels. However, Xpro India is 1.39 times more volatile than Kalyani Steels Limited. It trades about 0.39 of its potential returns per unit of risk. Kalyani Steels Limited is currently generating about 0.34 per unit of risk. If you would invest 115,300 in Xpro India Limited on September 12, 2024 and sell it today you would earn a total of 43,835 from holding Xpro India Limited or generate 38.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xpro India Limited vs. Kalyani Steels Limited
Performance |
| Timeline |
| Xpro India Limited |
| Kalyani Steels |
Xpro India and Kalyani Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xpro India and Kalyani Steels
The main advantage of trading using opposite Xpro India and Kalyani Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xpro India 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.| Xpro India vs. Hisar Metal Industries | Xpro India vs. Rama Steel Tubes | Xpro India vs. MSP Steel Power | Xpro India vs. Zenith Steel Pipes |
| Kalyani Steels vs. Steel Authority of | Kalyani Steels vs. Embassy Office Parks | Kalyani Steels vs. Indian Metals Ferro | Kalyani Steels vs. JTL Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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