Correlation Between ITI and Home First
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By analyzing existing cross correlation between ITI Limited and Home First Finance, you can compare the effects of market volatilities on ITI and Home First 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 ITI with a short position of Home First. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITI and Home First.
Diversification Opportunities for ITI and Home First
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ITI and Home is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ITI Limited and Home First Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home First Finance and ITI 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 ITI Limited are associated (or correlated) with Home First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home First Finance has no effect on the direction of ITI i.e., ITI and Home First go up and down completely randomly.
Pair Corralation between ITI and Home First
Assuming the 90 days trading horizon ITI Limited is expected to generate 2.08 times more return on investment than Home First. However, ITI is 2.08 times more volatile than Home First Finance. It trades about 0.04 of its potential returns per unit of risk. Home First Finance is currently generating about -0.06 per unit of risk. If you would invest 29,965 in ITI Limited on November 2, 2024 and sell it today you would earn a total of 2,515 from holding ITI Limited or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITI Limited vs. Home First Finance
Performance |
| Timeline |
| ITI Limited |
| Home First Finance |
ITI and Home First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITI and Home First
The main advantage of trading using opposite ITI and Home First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITI position performs unexpectedly, Home First 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 Home First will offset losses from the drop in Home First's long position.| ITI vs. Rama Steel Tubes | ITI vs. Praxis Home Retail | ITI vs. Rajnandini Metal Limited | ITI vs. Indian Metals Ferro |
| Home First vs. Network18 Media Investments | Home First vs. Omkar Speciality Chemicals | Home First vs. Infomedia Press Limited | Home First vs. JGCHEMICALS 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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