Correlation Between Lakshmi Finance and Bosch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lakshmi Finance Industrial and Bosch Limited, you can compare the effects of market volatilities on Lakshmi Finance and Bosch 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 Lakshmi Finance with a short position of Bosch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakshmi Finance and Bosch.
Diversification Opportunities for Lakshmi Finance and Bosch
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lakshmi and Bosch is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lakshmi Finance Industrial and Bosch Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Limited and Lakshmi Finance 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 Lakshmi Finance Industrial are associated (or correlated) with Bosch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Limited has no effect on the direction of Lakshmi Finance i.e., Lakshmi Finance and Bosch go up and down completely randomly.
Pair Corralation between Lakshmi Finance and Bosch
Assuming the 90 days trading horizon Lakshmi Finance Industrial is expected to generate 2.9 times more return on investment than Bosch. However, Lakshmi Finance is 2.9 times more volatile than Bosch Limited. It trades about 0.05 of its potential returns per unit of risk. Bosch Limited is currently generating about 0.11 per unit of risk. If you would invest 11,761 in Lakshmi Finance Industrial on September 3, 2024 and sell it today you would earn a total of 11,194 from holding Lakshmi Finance Industrial or generate 95.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lakshmi Finance Industrial vs. Bosch Limited
Performance |
| Timeline |
| Lakshmi Finance Indu |
| Bosch Limited |
Lakshmi Finance and Bosch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakshmi Finance and Bosch
The main advantage of trading using opposite Lakshmi Finance and Bosch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakshmi Finance position performs unexpectedly, Bosch 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 Bosch will offset losses from the drop in Bosch's long position.| Lakshmi Finance vs. The Federal Bank | Lakshmi Finance vs. General Insurance | Lakshmi Finance vs. Max Financial Services | Lakshmi Finance vs. Ankit Metal Power |
| Bosch vs. NRB Industrial Bearings | Bosch vs. Rajnandini Metal Limited | Bosch vs. Manaksia Coated Metals | Bosch vs. Lakshmi Finance Industrial |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |