Correlation Between Lemon Tree and Kilitch Drugs
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By analyzing existing cross correlation between Lemon Tree Hotels and Kilitch Drugs Limited, you can compare the effects of market volatilities on Lemon Tree and Kilitch Drugs 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 Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Kilitch Drugs.
Diversification Opportunities for Lemon Tree and Kilitch Drugs
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lemon and Kilitch is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs Limited 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 Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of Lemon Tree i.e., Lemon Tree and Kilitch Drugs go up and down completely randomly.
Pair Corralation between Lemon Tree and Kilitch Drugs
Assuming the 90 days trading horizon Lemon Tree Hotels is expected to under-perform the Kilitch Drugs. But the stock apears to be less risky and, when comparing its historical volatility, Lemon Tree Hotels is 1.06 times less risky than Kilitch Drugs. The stock trades about -0.11 of its potential returns per unit of risk. The Kilitch Drugs Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 32,455 in Kilitch Drugs Limited on October 17, 2024 and sell it today you would earn a total of 1,165 from holding Kilitch Drugs Limited or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Kilitch Drugs Limited
Performance |
| Timeline |
| Lemon Tree Hotels |
| Kilitch Drugs Limited |
Lemon Tree and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Kilitch Drugs
The main advantage of trading using opposite Lemon Tree and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' long position.| Lemon Tree vs. Iris Clothings Limited | Lemon Tree vs. Allied Blenders Distillers | Lemon Tree vs. Electrosteel Castings Limited | Lemon Tree vs. Clean Science and |
| Kilitch Drugs vs. Lemon Tree Hotels | Kilitch Drugs vs. Samhi Hotels Limited | Kilitch Drugs vs. Industrial Investment Trust | Kilitch Drugs vs. Nalwa Sons Investments |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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