Correlation Between Lemon Tree and Marshall Machines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lemon Tree Hotels and Marshall Machines Limited, you can compare the effects of market volatilities on Lemon Tree and Marshall Machines 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 Marshall Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Marshall Machines.
Diversification Opportunities for Lemon Tree and Marshall Machines
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lemon and Marshall is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels and Marshall Machines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marshall Machines 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 Marshall Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marshall Machines has no effect on the direction of Lemon Tree i.e., Lemon Tree and Marshall Machines go up and down completely randomly.
Pair Corralation between Lemon Tree and Marshall Machines
Assuming the 90 days trading horizon Lemon Tree Hotels is expected to generate 0.62 times more return on investment than Marshall Machines. However, Lemon Tree Hotels is 1.62 times less risky than Marshall Machines. It trades about 0.07 of its potential returns per unit of risk. Marshall Machines Limited is currently generating about 0.01 per unit of risk. If you would invest 8,565 in Lemon Tree Hotels on September 20, 2024 and sell it today you would earn a total of 6,914 from holding Lemon Tree Hotels or generate 80.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.98% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Marshall Machines Limited
Performance |
| Timeline |
| Lemon Tree Hotels |
| Marshall Machines |
Lemon Tree and Marshall Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Marshall Machines
The main advantage of trading using opposite Lemon Tree and Marshall Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree position performs unexpectedly, Marshall Machines 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 Marshall Machines will offset losses from the drop in Marshall Machines' long position.| Lemon Tree vs. Indian Railway Finance | Lemon Tree vs. Cholamandalam Financial Holdings | Lemon Tree vs. Reliance Industries Limited | Lemon Tree vs. Tata Consultancy Services |
| Marshall Machines vs. Jayant Agro Organics | Marshall Machines vs. Vidhi Specialty Food | Marshall Machines vs. Vibhor Steel Tubes | Marshall Machines vs. JSW Steel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |