Correlation Between KIOCL and Lux Industries
Specify exactly 2 symbols:
By analyzing existing cross correlation between KIOCL Limited and Lux Industries Limited, you can compare the effects of market volatilities on KIOCL and Lux Industries 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 KIOCL with a short position of Lux Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIOCL and Lux Industries.
Diversification Opportunities for KIOCL and Lux Industries
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KIOCL and Lux is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding KIOCL Limited and Lux Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lux Industries and KIOCL 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 KIOCL Limited are associated (or correlated) with Lux Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lux Industries has no effect on the direction of KIOCL i.e., KIOCL and Lux Industries go up and down completely randomly.
Pair Corralation between KIOCL and Lux Industries
Assuming the 90 days trading horizon KIOCL is expected to generate 2.46 times less return on investment than Lux Industries. In addition to that, KIOCL is 1.36 times more volatile than Lux Industries Limited. It trades about 0.02 of its total potential returns per unit of risk. Lux Industries Limited is currently generating about 0.08 per unit of volatility. If you would invest 134,163 in Lux Industries Limited on September 14, 2024 and sell it today you would earn a total of 69,392 from holding Lux Industries Limited or generate 51.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
KIOCL Limited vs. Lux Industries Limited
Performance |
| Timeline |
| KIOCL Limited |
| Lux Industries |
KIOCL and Lux Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIOCL and Lux Industries
The main advantage of trading using opposite KIOCL and Lux Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIOCL position performs unexpectedly, Lux Industries 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 Lux Industries will offset losses from the drop in Lux Industries' long position.| KIOCL vs. Cholamandalam Investment and | KIOCL vs. AUTHUM INVESTMENT INFRASTRUCTU | KIOCL vs. Ankit Metal Power | KIOCL vs. Bajaj Holdings Investment |
| Lux Industries vs. KIOCL Limited | Lux Industries vs. Spentex Industries Limited | Lux Industries vs. Punjab Sind Bank | Lux Industries vs. ITI 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world |