Correlation Between Lemon Tree and DJ Mediaprint
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By analyzing existing cross correlation between Lemon Tree Hotels and DJ Mediaprint Logistics, you can compare the effects of market volatilities on Lemon Tree and DJ Mediaprint 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 DJ Mediaprint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and DJ Mediaprint.
Diversification Opportunities for Lemon Tree and DJ Mediaprint
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lemon and DJML is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels and DJ Mediaprint Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DJ Mediaprint Logistics 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 DJ Mediaprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DJ Mediaprint Logistics has no effect on the direction of Lemon Tree i.e., Lemon Tree and DJ Mediaprint go up and down completely randomly.
Pair Corralation between Lemon Tree and DJ Mediaprint
Assuming the 90 days trading horizon Lemon Tree is expected to generate 1.79 times less return on investment than DJ Mediaprint. But when comparing it to its historical volatility, Lemon Tree Hotels is 1.68 times less risky than DJ Mediaprint. It trades about 0.36 of its potential returns per unit of risk. DJ Mediaprint Logistics is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 11,375 in DJ Mediaprint Logistics on August 30, 2024 and sell it today you would earn a total of 2,813 from holding DJ Mediaprint Logistics or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. DJ Mediaprint Logistics
Performance |
| Timeline |
| Lemon Tree Hotels |
| DJ Mediaprint Logistics |
Lemon Tree and DJ Mediaprint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and DJ Mediaprint
The main advantage of trading using opposite Lemon Tree and DJ Mediaprint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree position performs unexpectedly, DJ Mediaprint 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 DJ Mediaprint will offset losses from the drop in DJ Mediaprint's long position.| Lemon Tree vs. ICICI Securities Limited | Lemon Tree vs. Nippon Life India | Lemon Tree vs. Fortis Healthcare Limited | Lemon Tree vs. ICICI Lombard General |
| DJ Mediaprint vs. State Bank of | DJ Mediaprint vs. Life Insurance | DJ Mediaprint vs. HDFC Bank Limited | DJ Mediaprint vs. ICICI Bank 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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