Correlation Between Agarwal Industrial and Lakshmi Finance
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By analyzing existing cross correlation between Agarwal Industrial and Lakshmi Finance Industrial, you can compare the effects of market volatilities on Agarwal Industrial and Lakshmi Finance 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 Agarwal Industrial with a short position of Lakshmi Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agarwal Industrial and Lakshmi Finance.
Diversification Opportunities for Agarwal Industrial and Lakshmi Finance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agarwal and Lakshmi is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Agarwal Industrial and Lakshmi Finance Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakshmi Finance Indu and Agarwal Industrial 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 Agarwal Industrial are associated (or correlated) with Lakshmi Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakshmi Finance Indu has no effect on the direction of Agarwal Industrial i.e., Agarwal Industrial and Lakshmi Finance go up and down completely randomly.
Pair Corralation between Agarwal Industrial and Lakshmi Finance
Assuming the 90 days trading horizon Agarwal Industrial is expected to generate 1.11 times more return on investment than Lakshmi Finance. However, Agarwal Industrial is 1.11 times more volatile than Lakshmi Finance Industrial. It trades about 0.08 of its potential returns per unit of risk. Lakshmi Finance Industrial is currently generating about -0.07 per unit of risk. If you would invest 101,380 in Agarwal Industrial on August 29, 2024 and sell it today you would earn a total of 3,330 from holding Agarwal Industrial or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agarwal Industrial vs. Lakshmi Finance Industrial
Performance |
| Timeline |
| Agarwal Industrial |
| Lakshmi Finance Indu |
Agarwal Industrial and Lakshmi Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agarwal Industrial and Lakshmi Finance
The main advantage of trading using opposite Agarwal Industrial and Lakshmi Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agarwal Industrial position performs unexpectedly, Lakshmi Finance 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 Lakshmi Finance will offset losses from the drop in Lakshmi Finance's long position.| Agarwal Industrial vs. Elin Electronics Limited | Agarwal Industrial vs. Newgen Software Technologies | Agarwal Industrial vs. R S Software | Agarwal Industrial vs. Salzer Electronics Limited |
| Lakshmi Finance vs. Zenith Steel Pipes | Lakshmi Finance vs. Bodhi Tree Multimedia | Lakshmi Finance vs. Ortel Communications Limited | Lakshmi Finance vs. Cyber Media Research |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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