Correlation Between Iris Clothings and Lotus Eye
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By analyzing existing cross correlation between Iris Clothings Limited and Lotus Eye Hospital, you can compare the effects of market volatilities on Iris Clothings 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 Iris Clothings with a short position of Lotus Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Clothings and Lotus Eye.
Diversification Opportunities for Iris Clothings and Lotus Eye
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Iris and Lotus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Iris Clothings Limited 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 Iris Clothings 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 Iris Clothings Limited 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 Iris Clothings i.e., Iris Clothings and Lotus Eye go up and down completely randomly.
Pair Corralation between Iris Clothings and Lotus Eye
Assuming the 90 days trading horizon Iris Clothings Limited is expected to generate 0.84 times more return on investment than Lotus Eye. However, Iris Clothings Limited is 1.18 times less risky than Lotus Eye. It trades about -0.11 of its potential returns per unit of risk. Lotus Eye Hospital is currently generating about -0.13 per unit of risk. If you would invest 6,368 in Iris Clothings Limited on October 30, 2024 and sell it today you would lose (506.00) from holding Iris Clothings Limited or give up 7.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iris Clothings Limited vs. Lotus Eye Hospital
Performance |
| Timeline |
| Iris Clothings |
| Lotus Eye Hospital |
Iris Clothings and Lotus Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iris Clothings and Lotus Eye
The main advantage of trading using opposite Iris Clothings and Lotus Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Clothings 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.| Iris Clothings vs. Nucleus Software Exports | Iris Clothings vs. Thirumalai Chemicals Limited | Iris Clothings vs. Agarwal Industrial | Iris Clothings vs. Southern Petrochemicals Industries |
| Lotus Eye vs. Life Insurance | Lotus Eye vs. Power Finance | Lotus Eye vs. HDFC Bank Limited | Lotus Eye vs. State Bank of |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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