Correlation Between India Glycols and LT Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between India Glycols Limited and LT Foods Limited, you can compare the effects of market volatilities on India Glycols and LT Foods 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 India Glycols with a short position of LT Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Glycols and LT Foods.
Diversification Opportunities for India Glycols and LT Foods
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between India and LTFOODS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding India Glycols Limited and LT Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LT Foods Limited and India Glycols 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 India Glycols Limited are associated (or correlated) with LT Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LT Foods Limited has no effect on the direction of India Glycols i.e., India Glycols and LT Foods go up and down completely randomly.
Pair Corralation between India Glycols and LT Foods
Assuming the 90 days trading horizon India Glycols Limited is expected to under-perform the LT Foods. In addition to that, India Glycols is 1.09 times more volatile than LT Foods Limited. It trades about -0.08 of its total potential returns per unit of risk. LT Foods Limited is currently generating about 0.01 per unit of volatility. If you would invest 36,980 in LT Foods Limited on November 27, 2024 and sell it today you would lose (190.00) from holding LT Foods Limited or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
India Glycols Limited vs. LT Foods Limited
Performance |
| Timeline |
| India Glycols Limited |
| LT Foods Limited |
India Glycols and LT Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with India Glycols and LT Foods
The main advantage of trading using opposite India Glycols and LT Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if India Glycols position performs unexpectedly, LT Foods 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 LT Foods will offset losses from the drop in LT Foods' long position.| India Glycols vs. Khaitan Chemicals Fertilizers | India Glycols vs. Pondy Oxides Chemicals | India Glycols vs. Som Distilleries Breweries | India Glycols vs. Silver Touch Technologies |
| LT Foods vs. Visa Steel Limited | LT Foods vs. Agro Tech Foods | LT Foods vs. Sarveshwar Foods Limited | LT Foods vs. Kalyani Steels Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |