Correlation Between ILFS Investment and Whirlpool
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By analyzing existing cross correlation between ILFS Investment Managers and Whirlpool of India, you can compare the effects of market volatilities on ILFS Investment and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of ILFS Investment and Whirlpool.
Diversification Opportunities for ILFS Investment and Whirlpool
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ILFS and Whirlpool is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ILFS Investment Managers and Whirlpool of India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool of India 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool of India has no effect on the direction of ILFS Investment i.e., ILFS Investment and Whirlpool go up and down completely randomly.
Pair Corralation between ILFS Investment and Whirlpool
Assuming the 90 days trading horizon ILFS Investment Managers is expected to under-perform the Whirlpool. But the stock apears to be less risky and, when comparing its historical volatility, ILFS Investment Managers is 1.21 times less risky than Whirlpool. The stock trades about -0.15 of its potential returns per unit of risk. The Whirlpool of India is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 199,375 in Whirlpool of India on September 5, 2024 and sell it today you would lose (12,305) from holding Whirlpool of India or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ILFS Investment Managers vs. Whirlpool of India
Performance |
| Timeline |
| ILFS Investment Managers |
| Whirlpool of India |
ILFS Investment and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ILFS Investment and Whirlpool
The main advantage of trading using opposite ILFS Investment and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ILFS Investment position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| ILFS Investment vs. Indian Metals Ferro | ILFS Investment vs. JGCHEMICALS LIMITED | ILFS Investment vs. Privi Speciality Chemicals | ILFS Investment vs. Sanginita Chemicals Limited |
| Whirlpool vs. Styrenix Performance Materials | Whirlpool vs. LLOYDS METALS AND | Whirlpool vs. Shyam Metalics and | Whirlpool 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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