Correlation Between KTL GLOBAL and COMMERCIAL VEHICLE

Can any of the company-specific risk be diversified away by investing in both KTL GLOBAL and COMMERCIAL VEHICLE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KTL GLOBAL and COMMERCIAL VEHICLE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KTL GLOBAL and COMMERCIAL VEHICLE, you can compare the effects of market volatilities on KTL GLOBAL and COMMERCIAL VEHICLE 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 KTL GLOBAL with a short position of COMMERCIAL VEHICLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTL GLOBAL and COMMERCIAL VEHICLE.

Diversification Opportunities for KTL GLOBAL and COMMERCIAL VEHICLE

0.0

Correlation Coefficient

KTL GLOBAL  COMMERCIAL VEHICLE

Pay attention - limited upside

The 3 months correlation between KTL and COMMERCIAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTL GLOBAL and COMMERCIAL VEHICLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL VEHICLE and KTL GLOBAL 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 KTL GLOBAL are associated (or correlated) with COMMERCIAL VEHICLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMERCIAL VEHICLE has no effect on the direction of KTL GLOBAL i.e., KTL GLOBAL and COMMERCIAL VEHICLE go up and down completely randomly.

Pair Corralation between KTL GLOBAL and COMMERCIAL VEHICLE

If you would invest  5.52  in KTL GLOBAL on December 30, 2024 and sell it today you would earn a total of  0.00  from holding KTL GLOBAL or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

KTL GLOBAL  vs.  COMMERCIAL VEHICLE

KTL GLOBAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days KTL GLOBAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KTL GLOBAL is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

COMMERCIAL VEHICLE

Risk-Adjusted Performance

Very Weak

Over the last 90 days COMMERCIAL VEHICLE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with KTL GLOBAL and COMMERCIAL VEHICLE

The main advantage of trading using opposite KTL GLOBAL and COMMERCIAL VEHICLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTL GLOBAL position performs unexpectedly, COMMERCIAL VEHICLE 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 COMMERCIAL VEHICLE will offset losses from the drop in COMMERCIAL VEHICLE's long position.

The idea behind KTL GLOBAL and COMMERCIAL VEHICLE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.