Correlation Between LLOYDS METALS and ITI
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By analyzing existing cross correlation between LLOYDS METALS AND and ITI Limited, you can compare the effects of market volatilities on LLOYDS METALS and ITI 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 LLOYDS METALS with a short position of ITI. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS METALS and ITI.
Diversification Opportunities for LLOYDS METALS and ITI
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LLOYDS and ITI is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS METALS AND and ITI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITI Limited and LLOYDS METALS 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 LLOYDS METALS AND are associated (or correlated) with ITI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITI Limited has no effect on the direction of LLOYDS METALS i.e., LLOYDS METALS and ITI go up and down completely randomly.
Pair Corralation between LLOYDS METALS and ITI
Assuming the 90 days trading horizon LLOYDS METALS is expected to generate 1.2 times less return on investment than ITI. But when comparing it to its historical volatility, LLOYDS METALS AND is 1.49 times less risky than ITI. It trades about 0.09 of its potential returns per unit of risk. ITI Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,175 in ITI Limited on September 5, 2024 and sell it today you would earn a total of 17,570 from holding ITI Limited or generate 157.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 70.02% |
| Values | Daily Returns |
LLOYDS METALS AND vs. ITI Limited
Performance |
| Timeline |
| LLOYDS METALS AND |
| ITI Limited |
LLOYDS METALS and ITI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LLOYDS METALS and ITI
The main advantage of trading using opposite LLOYDS METALS and ITI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS METALS position performs unexpectedly, ITI 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 ITI will offset losses from the drop in ITI's long position.| LLOYDS METALS vs. JSW Steel Limited | LLOYDS METALS vs. Jindal Steel Power | LLOYDS METALS vs. Ratnamani Metals Tubes | LLOYDS METALS vs. Shyam Metalics and |
| ITI vs. Industrial Investment Trust | ITI vs. Sanginita Chemicals Limited | ITI vs. DMCC SPECIALITY CHEMICALS | ITI vs. Ratnamani Metals Tubes |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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