Correlation Between COMMERCIAL VEHICLE and KTL GLOBAL

Can any of the company-specific risk be diversified away by investing in both COMMERCIAL VEHICLE and KTL GLOBAL 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 COMMERCIAL VEHICLE and KTL GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for COMMERCIAL VEHICLE and KTL GLOBAL

0.0

Correlation Coefficient

COMMERCIAL VEHICLE  KTL GLOBAL

Pay attention - limited upside

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

Pair Corralation between COMMERCIAL VEHICLE and KTL GLOBAL

If you would invest  5.52  in KTL GLOBAL on September 5, 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	98.46%
Values	Daily Returns

COMMERCIAL VEHICLE  vs.  KTL GLOBAL

COMMERCIAL VEHICLE

Risk-Adjusted Performance

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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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

KTL GLOBAL

Risk-Adjusted Performance

0 of 100

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with COMMERCIAL VEHICLE and KTL GLOBAL

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

The idea behind COMMERCIAL VEHICLE and KTL GLOBAL 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.