Correlation Between Globus Spirits and Kaushalya Infrastructure

Can any of the company-specific risk be diversified away by investing in both Globus Spirits and Kaushalya Infrastructure 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 Globus Spirits and Kaushalya Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Globus Spirits Limited and Kaushalya Infrastructure Development, you can compare the effects of market volatilities on Globus Spirits and Kaushalya Infrastructure 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 Globus Spirits with a short position of Kaushalya Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Spirits and Kaushalya Infrastructure.

Diversification Opportunities for Globus Spirits and Kaushalya Infrastructure

-0.28

Correlation Coefficient

Globus Spirits  Kaushalya Infrastructure

Very good diversification

The 3 months correlation between Globus and Kaushalya is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Globus Spirits Limited and Kaushalya Infrastructure Devel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaushalya Infrastructure and Globus Spirits 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 Globus Spirits Limited are associated (or correlated) with Kaushalya Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaushalya Infrastructure has no effect on the direction of Globus Spirits i.e., Globus Spirits and Kaushalya Infrastructure go up and down completely randomly.

Pair Corralation between Globus Spirits and Kaushalya Infrastructure

Assuming the 90 days trading horizon Globus Spirits Limited is expected to under-perform the Kaushalya Infrastructure. In addition to that, Globus Spirits is 1.68 times more volatile than Kaushalya Infrastructure Development. It trades about -0.18 of its total potential returns per unit of risk. Kaushalya Infrastructure Development is currently generating about 0.06 per unit of volatility. If you would invest  90,450  in Kaushalya Infrastructure Development on September 14, 2024 and sell it today you would earn a total of  5,720  from holding Kaushalya Infrastructure Development or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Globus Spirits Limited  vs.  Kaushalya Infrastructure Devel

Globus Spirits

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Globus Spirits Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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.

Kaushalya Infrastructure

Risk-Adjusted Performance

4 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kaushalya Infrastructure Development are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain essential indicators, Kaushalya Infrastructure may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Globus Spirits and Kaushalya Infrastructure

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

The idea behind Globus Spirits Limited and Kaushalya Infrastructure Development 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.