Correlation Between Indian Card and Lux Industries
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By analyzing existing cross correlation between Indian Card Clothing and Lux Industries Limited, you can compare the effects of market volatilities on Indian Card and Lux Industries 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 Indian Card with a short position of Lux Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Card and Lux Industries.
Diversification Opportunities for Indian Card and Lux Industries
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indian and Lux is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Indian Card Clothing and Lux Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lux Industries and Indian Card 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 Indian Card Clothing are associated (or correlated) with Lux Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lux Industries has no effect on the direction of Indian Card i.e., Indian Card and Lux Industries go up and down completely randomly.
Pair Corralation between Indian Card and Lux Industries
Assuming the 90 days trading horizon Indian Card Clothing is expected to generate 1.13 times more return on investment than Lux Industries. However, Indian Card is 1.13 times more volatile than Lux Industries Limited. It trades about 0.43 of its potential returns per unit of risk. Lux Industries Limited is currently generating about 0.27 per unit of risk. If you would invest 26,795 in Indian Card Clothing on September 13, 2024 and sell it today you would earn a total of 6,210 from holding Indian Card Clothing or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Indian Card Clothing vs. Lux Industries Limited
Performance |
| Timeline |
| Indian Card Clothing |
| Lux Industries |
Indian Card and Lux Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Card and Lux Industries
The main advantage of trading using opposite Indian Card and Lux Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Card position performs unexpectedly, Lux Industries 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 Lux Industries will offset losses from the drop in Lux Industries' long position.| Indian Card vs. Royal Orchid Hotels | Indian Card vs. Union Bank of | Indian Card vs. City Union Bank | Indian Card vs. General Insurance |
| Lux Industries vs. EIH Associated Hotels | Lux Industries vs. The Hi Tech Gears | Lux Industries vs. Samhi Hotels Limited | Lux Industries vs. Asian Hotels 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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