Correlation Between Home First and Lotus Eye
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By analyzing existing cross correlation between Home First Finance and Lotus Eye Hospital, you can compare the effects of market volatilities on Home First and Lotus Eye 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 Home First with a short position of Lotus Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and Lotus Eye.
Diversification Opportunities for Home First and Lotus Eye
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Home and Lotus is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance and Lotus Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Eye Hospital and Home First 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 Home First Finance are associated (or correlated) with Lotus Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Eye Hospital has no effect on the direction of Home First i.e., Home First and Lotus Eye go up and down completely randomly.
Pair Corralation between Home First and Lotus Eye
Assuming the 90 days trading horizon Home First Finance is expected to under-perform the Lotus Eye. But the stock apears to be less risky and, when comparing its historical volatility, Home First Finance is 1.07 times less risky than Lotus Eye. The stock trades about -0.13 of its potential returns per unit of risk. The Lotus Eye Hospital is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,825 in Lotus Eye Hospital on September 4, 2024 and sell it today you would earn a total of 705.00 from holding Lotus Eye Hospital or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home First Finance vs. Lotus Eye Hospital
Performance |
| Timeline |
| Home First Finance |
| Lotus Eye Hospital |
Home First and Lotus Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and Lotus Eye
The main advantage of trading using opposite Home First and Lotus Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home First position performs unexpectedly, Lotus Eye 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 Lotus Eye will offset losses from the drop in Lotus Eye's long position.| Home First vs. Silly Monks Entertainment | Home First vs. Aban Offshore Limited | Home First vs. Modi Rubber Limited | Home First vs. Kewal Kiran Clothing |
| Lotus Eye vs. GM Breweries Limited | Lotus Eye vs. Newgen Software Technologies | Lotus Eye vs. United Drilling Tools | Lotus Eye vs. Jindal Drilling And |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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