Correlation Between ILFS Investment and State Trading
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By analyzing existing cross correlation between ILFS Investment Managers and The State Trading, you can compare the effects of market volatilities on ILFS Investment and State Trading 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 ILFS Investment with a short position of State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of ILFS Investment and State Trading.
Diversification Opportunities for ILFS Investment and State Trading
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ILFS and State is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ILFS Investment Managers and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading and ILFS Investment 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 ILFS Investment Managers are associated (or correlated) with State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of ILFS Investment i.e., ILFS Investment and State Trading go up and down completely randomly.
Pair Corralation between ILFS Investment and State Trading
Assuming the 90 days trading horizon ILFS Investment Managers is expected to generate 0.97 times more return on investment than State Trading. However, ILFS Investment Managers is 1.04 times less risky than State Trading. It trades about -0.01 of its potential returns per unit of risk. The State Trading is currently generating about -0.19 per unit of risk. If you would invest 1,045 in ILFS Investment Managers on November 5, 2024 and sell it today you would lose (15.00) from holding ILFS Investment Managers or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ILFS Investment Managers vs. The State Trading
Performance |
| Timeline |
| ILFS Investment Managers |
| State Trading |
ILFS Investment and State Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ILFS Investment and State Trading
The main advantage of trading using opposite ILFS Investment and State Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ILFS Investment position performs unexpectedly, State Trading 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 State Trading will offset losses from the drop in State Trading's long position.| ILFS Investment vs. Cyber Media Research | ILFS Investment vs. Network18 Media Investments | ILFS Investment vs. Tata Investment | ILFS Investment vs. The Investment Trust |
| State Trading vs. Credo Brands Marketing | State Trading vs. United Drilling Tools | State Trading vs. Lemon Tree Hotels | State Trading vs. Speciality Restaurants 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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