Correlation Between ILFS Investment and Investment Trust
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By analyzing existing cross correlation between ILFS Investment Managers and The Investment Trust, you can compare the effects of market volatilities on ILFS Investment and Investment Trust 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 Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ILFS Investment and Investment Trust.
Diversification Opportunities for ILFS Investment and Investment Trust
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ILFS and Investment is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ILFS Investment Managers and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust 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 Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of ILFS Investment i.e., ILFS Investment and Investment Trust go up and down completely randomly.
Pair Corralation between ILFS Investment and Investment Trust
Assuming the 90 days trading horizon ILFS Investment Managers is expected to generate 1.27 times more return on investment than Investment Trust. However, ILFS Investment is 1.27 times more volatile than The Investment Trust. It trades about -0.12 of its potential returns per unit of risk. The Investment Trust is currently generating about -0.24 per unit of risk. If you would invest 1,122 in ILFS Investment Managers on November 2, 2024 and sell it today you would lose (97.00) from holding ILFS Investment Managers or give up 8.65% 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 Investment Trust
Performance |
| Timeline |
| ILFS Investment Managers |
| Investment Trust |
ILFS Investment and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ILFS Investment and Investment Trust
The main advantage of trading using opposite ILFS Investment and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ILFS Investment position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| ILFS Investment vs. Max Healthcare Institute | ILFS Investment vs. Apex Frozen Foods | ILFS Investment vs. Univa Foods Limited | ILFS Investment vs. Zota Health Care |
| Investment Trust vs. Touchwood Entertainment Limited | Investment Trust vs. HT Media Limited | Investment Trust vs. Eros International Media | Investment Trust vs. Varun Beverages 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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