Correlation Between Kalyani Investment and AXISCADES Technologies

Can any of the company-specific risk be diversified away by investing in both Kalyani Investment and AXISCADES Technologies 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 Kalyani Investment and AXISCADES Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kalyani Investment and AXISCADES Technologies Limited, you can compare the effects of market volatilities on Kalyani Investment and AXISCADES Technologies 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 Kalyani Investment with a short position of AXISCADES Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalyani Investment and AXISCADES Technologies.

Diversification Opportunities for Kalyani Investment and AXISCADES Technologies

-0.35

Correlation Coefficient

Kalyani Investment  AXISCADES Technologies

Very good diversification

The 3 months correlation between Kalyani and AXISCADES is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kalyani Investment and AXISCADES Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXISCADES Technologies and Kalyani Investment 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 Kalyani Investment are associated (or correlated) with AXISCADES Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXISCADES Technologies has no effect on the direction of Kalyani Investment i.e., Kalyani Investment and AXISCADES Technologies go up and down completely randomly.

Pair Corralation between Kalyani Investment and AXISCADES Technologies

Assuming the 90 days trading horizon Kalyani Investment is expected to under-perform the AXISCADES Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Kalyani Investment is 1.22 times less risky than AXISCADES Technologies. The stock trades about -0.17 of its potential returns per unit of risk. The AXISCADES Technologies Limited is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  64,180  in AXISCADES Technologies Limited on December 27, 2024 and sell it today you would earn a total of  25,620  from holding AXISCADES Technologies Limited or generate 39.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Kalyani Investment  vs.  AXISCADES Technologies Limited

Kalyani Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kalyani Investment 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.

AXISCADES Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AXISCADES Technologies Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, AXISCADES Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kalyani Investment and AXISCADES Technologies

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

The idea behind Kalyani Investment and AXISCADES Technologies Limited 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.