Correlation Between Lemon Tree and Bharatiya Global
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By analyzing existing cross correlation between Lemon Tree Hotels and Bharatiya Global Infomedia, you can compare the effects of market volatilities on Lemon Tree and Bharatiya Global 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 Lemon Tree with a short position of Bharatiya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Bharatiya Global.
Diversification Opportunities for Lemon Tree and Bharatiya Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lemon and Bharatiya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels and Bharatiya Global Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bharatiya Global Inf and Lemon Tree 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 Lemon Tree Hotels are associated (or correlated) with Bharatiya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bharatiya Global Inf has no effect on the direction of Lemon Tree i.e., Lemon Tree and Bharatiya Global go up and down completely randomly.
Pair Corralation between Lemon Tree and Bharatiya Global
Assuming the 90 days trading horizon Lemon Tree is expected to generate 25.09 times less return on investment than Bharatiya Global. But when comparing it to its historical volatility, Lemon Tree Hotels is 1.02 times less risky than Bharatiya Global. It trades about 0.01 of its potential returns per unit of risk. Bharatiya Global Infomedia is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Bharatiya Global Infomedia on October 30, 2024 and sell it today you would earn a total of 97.00 from holding Bharatiya Global Infomedia or generate 26.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Bharatiya Global Infomedia
Performance |
| Timeline |
| Lemon Tree Hotels |
| Bharatiya Global Inf |
Lemon Tree and Bharatiya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Bharatiya Global
The main advantage of trading using opposite Lemon Tree and Bharatiya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree position performs unexpectedly, Bharatiya Global 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 Bharatiya Global will offset losses from the drop in Bharatiya Global's long position.| Lemon Tree vs. State Bank of | Lemon Tree vs. Life Insurance | Lemon Tree vs. HDFC Bank Limited | Lemon Tree vs. ICICI Bank Limited |
| Bharatiya Global vs. State Bank of | Bharatiya Global vs. Reliance Industries Limited | Bharatiya Global vs. HDFC Bank Limited | Bharatiya Global vs. Tata Motors 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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