Correlation Between Gaming and Kirloskar Ferrous

By analyzing existing cross correlation between Gaming And Leisure and Kirloskar Ferrous Ind, you can compare the effects of market volatilities on Gaming and Kirloskar Ferrous 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 Gaming with a short position of Kirloskar Ferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and Kirloskar Ferrous.

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

Diversification Opportunities for Gaming and Kirloskar Ferrous

0.61
  Correlation Coefficient
Gaming And Leisure
Kirloskar Ferrous Ind

Poor diversification

The 3 months correlation between Gaming and Kirloskar is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaming And Leisure Properties and Kirloskar Ferrous Ind Ltd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kirloskar Ferrous Ind and Gaming 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 Gaming And Leisure are associated (or correlated) with Kirloskar Ferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirloskar Ferrous Ind has no effect on the direction of Gaming i.e. Gaming and Kirloskar Ferrous go up and down completely randomly.

Pair Corralation between Gaming and Kirloskar Ferrous

Given the investment horizon of 30 days, Gaming is expected to generate 1.19 times less return on investment than Kirloskar Ferrous. In addition to that, Gaming is 1.2 times more volatile than Kirloskar Ferrous Ind. It trades about 0.14 of its total potential returns per unit of risk. Kirloskar Ferrous Ind is currently generating about 0.19 per unit of volatility. If you would invest  5,250  in Kirloskar Ferrous Ind on June 7, 2020 and sell it today you would earn a total of  1,835  from holding Kirloskar Ferrous Ind or generate 34.95% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy86.89%
ValuesDaily Returns

Gaming And Leisure Properties  vs.  Kirloskar Ferrous Ind Ltd

 Performance (%) 
      Timeline 
Gaming And Leisure 
99

Gaming Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gaming And Leisure are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Despite nearly uncertain fundamental indicators, Gaming layed out solid returns over the last few months and may actually be approaching a breakup point.
Kirloskar Ferrous Ind 
1313

Kirloskar Ferrous Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kirloskar Ferrous Ind are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Kirloskar Ferrous reported solid returns over the last few months and may actually be approaching a breakup point.

Gaming and Kirloskar Ferrous Volatility Contrast

 Predicted Return Density 
      Returns 
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