Correlation Between Lotus Eye and Consolidated Construction
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By analyzing existing cross correlation between Lotus Eye Hospital and Consolidated Construction Consortium, you can compare the effects of market volatilities on Lotus Eye and Consolidated Construction 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 Lotus Eye with a short position of Consolidated Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and Consolidated Construction.
Diversification Opportunities for Lotus Eye and Consolidated Construction
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Consolidated is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital and Consolidated Construction Cons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Construction and Lotus Eye 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 Lotus Eye Hospital are associated (or correlated) with Consolidated Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Construction has no effect on the direction of Lotus Eye i.e., Lotus Eye and Consolidated Construction go up and down completely randomly.
Pair Corralation between Lotus Eye and Consolidated Construction
Assuming the 90 days trading horizon Lotus Eye Hospital is expected to under-perform the Consolidated Construction. But the stock apears to be less risky and, when comparing its historical volatility, Lotus Eye Hospital is 1.99 times less risky than Consolidated Construction. The stock trades about -0.14 of its potential returns per unit of risk. The Consolidated Construction Consortium is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,558 in Consolidated Construction Consortium on November 2, 2024 and sell it today you would earn a total of 111.00 from holding Consolidated Construction Consortium or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Eye Hospital vs. Consolidated Construction Cons
Performance |
| Timeline |
| Lotus Eye Hospital |
| Consolidated Construction |
Lotus Eye and Consolidated Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and Consolidated Construction
The main advantage of trading using opposite Lotus Eye and Consolidated Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye position performs unexpectedly, Consolidated Construction 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 Consolidated Construction will offset losses from the drop in Consolidated Construction's long position.| Lotus Eye vs. Dodla Dairy Limited | Lotus Eye vs. Kohinoor Foods Limited | Lotus Eye vs. ADF Foods Limited | Lotus Eye vs. Tree House Education |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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