Correlation Between Lotus Eye and MIRC Electronics
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By analyzing existing cross correlation between Lotus Eye Hospital and MIRC Electronics Limited, you can compare the effects of market volatilities on Lotus Eye and MIRC Electronics 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 MIRC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and MIRC Electronics.
Diversification Opportunities for Lotus Eye and MIRC Electronics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lotus and MIRC is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital and MIRC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRC Electronics 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 MIRC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRC Electronics has no effect on the direction of Lotus Eye i.e., Lotus Eye and MIRC Electronics go up and down completely randomly.
Pair Corralation between Lotus Eye and MIRC Electronics
Assuming the 90 days trading horizon Lotus Eye is expected to generate 4.69 times less return on investment than MIRC Electronics. But when comparing it to its historical volatility, Lotus Eye Hospital is 1.14 times less risky than MIRC Electronics. It trades about 0.01 of its potential returns per unit of risk. MIRC Electronics Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,640 in MIRC Electronics Limited on October 14, 2024 and sell it today you would earn a total of 543.00 from holding MIRC Electronics Limited or generate 33.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Lotus Eye Hospital vs. MIRC Electronics Limited
Performance |
| Timeline |
| Lotus Eye Hospital |
| MIRC Electronics |
Lotus Eye and MIRC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and MIRC Electronics
The main advantage of trading using opposite Lotus Eye and MIRC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye position performs unexpectedly, MIRC Electronics 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 MIRC Electronics will offset losses from the drop in MIRC Electronics' long position.| Lotus Eye vs. SBI Life Insurance | Lotus Eye vs. Jindal Poly Investment | Lotus Eye vs. UTI Asset Management | Lotus Eye vs. Network18 Media Investments |
| MIRC Electronics vs. HT Media Limited | MIRC Electronics vs. Zee Entertainment Enterprises | MIRC Electronics vs. Sakar Healthcare Limited | MIRC Electronics vs. Lotus Eye Hospital |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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