Correlation Between Lotus Eye and IdeaForge Technology
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By analyzing existing cross correlation between Lotus Eye Hospital and ideaForge Technology Limited, you can compare the effects of market volatilities on Lotus Eye and IdeaForge Technology 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 IdeaForge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and IdeaForge Technology.
Diversification Opportunities for Lotus Eye and IdeaForge Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and IdeaForge is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital and ideaForge Technology Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ideaForge Technology 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 IdeaForge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ideaForge Technology has no effect on the direction of Lotus Eye i.e., Lotus Eye and IdeaForge Technology go up and down completely randomly.
Pair Corralation between Lotus Eye and IdeaForge Technology
Assuming the 90 days trading horizon Lotus Eye Hospital is expected to generate 0.65 times more return on investment than IdeaForge Technology. However, Lotus Eye Hospital is 1.54 times less risky than IdeaForge Technology. It trades about -0.15 of its potential returns per unit of risk. ideaForge Technology Limited is currently generating about -0.43 per unit of risk. If you would invest 7,083 in Lotus Eye Hospital on November 3, 2024 and sell it today you would lose (458.00) from holding Lotus Eye Hospital or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Eye Hospital vs. ideaForge Technology Limited
Performance |
| Timeline |
| Lotus Eye Hospital |
| ideaForge Technology |
Lotus Eye and IdeaForge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and IdeaForge Technology
The main advantage of trading using opposite Lotus Eye and IdeaForge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye position performs unexpectedly, IdeaForge Technology 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 IdeaForge Technology will offset losses from the drop in IdeaForge Technology's long position.| Lotus Eye vs. WESTLIFE FOODWORLD LIMITED | Lotus Eye vs. ADF Foods Limited | Lotus Eye vs. Dodla Dairy Limited | Lotus Eye vs. Neogen Chemicals Limited |
| IdeaForge Technology vs. Computer Age Management | IdeaForge Technology vs. Patanjali Foods Limited | IdeaForge Technology vs. Vinati Organics Limited | IdeaForge Technology vs. Parag Milk Foods |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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