Correlation Between Bigbloc Construction and Kalyani Investment

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

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

Diversification Opportunities for Bigbloc Construction and Kalyani Investment

0.25

Correlation Coefficient

Bigbloc Construction  Kalyani Investment

Modest diversification

The 3 months correlation between Bigbloc and Kalyani is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bigbloc Construction Limited and Kalyani Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalyani Investment and Bigbloc Construction 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 Bigbloc Construction Limited are associated (or correlated) with Kalyani Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalyani Investment has no effect on the direction of Bigbloc Construction i.e., Bigbloc Construction and Kalyani Investment go up and down completely randomly.

Pair Corralation between Bigbloc Construction and Kalyani Investment

Assuming the 90 days trading horizon Bigbloc Construction Limited is expected to under-perform the Kalyani Investment. In addition to that, Bigbloc Construction is 1.38 times more volatile than Kalyani Investment. It trades about -0.08 of its total potential returns per unit of risk. Kalyani Investment is currently generating about 0.12 per unit of volatility. If you would invest  427,040  in Kalyani Investment on May 7, 2025 and sell it today you would earn a total of  52,020  from holding Kalyani Investment or generate 12.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bigbloc Construction Limited  vs.  Kalyani Investment

Bigbloc Construction

Risk-Adjusted Performance

Weakest

Over the last 90 days Bigbloc Construction Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Kalyani Investment

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Kalyani Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kalyani Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bigbloc Construction and Kalyani Investment

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

The idea behind Bigbloc Construction Limited and Kalyani Investment 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.