Correlation Between Kalyani Investment and POWERGRID Infrastructure

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

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

Diversification Opportunities for Kalyani Investment and POWERGRID Infrastructure

0.42

Correlation Coefficient

Kalyani Investment  POWERGRID Infrastructure

Very weak diversification

The 3 months correlation between Kalyani and POWERGRID is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kalyani Investment and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure 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 POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Kalyani Investment i.e., Kalyani Investment and POWERGRID Infrastructure go up and down completely randomly.

Pair Corralation between Kalyani Investment and POWERGRID Infrastructure

Assuming the 90 days trading horizon Kalyani Investment is expected to generate 1.08 times less return on investment than POWERGRID Infrastructure. In addition to that, Kalyani Investment is 1.57 times more volatile than POWERGRID Infrastructure Investment. It trades about 0.12 of its total potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about 0.2 per unit of volatility. If you would invest  8,200  in POWERGRID Infrastructure Investment on May 7, 2025 and sell it today you would earn a total of  1,119  from holding POWERGRID Infrastructure Investment or generate 13.65% return on investment over 90 days.

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

Kalyani Investment  vs.  POWERGRID Infrastructure Inves

Kalyani Investment

Risk-Adjusted Performance

OK

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 unfluctuating basic indicators, Kalyani Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

POWERGRID Infrastructure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in POWERGRID Infrastructure Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, POWERGRID Infrastructure unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kalyani Investment and POWERGRID Infrastructure

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

The idea behind Kalyani Investment and POWERGRID Infrastructure 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.