Correlation Between Lotus Eye and Modi Rubber
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By analyzing existing cross correlation between Lotus Eye Hospital and Modi Rubber Limited, you can compare the effects of market volatilities on Lotus Eye and Modi Rubber 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 Modi Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and Modi Rubber.
Diversification Opportunities for Lotus Eye and Modi Rubber
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Modi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital and Modi Rubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modi Rubber Limited 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 Modi Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modi Rubber Limited has no effect on the direction of Lotus Eye i.e., Lotus Eye and Modi Rubber go up and down completely randomly.
Pair Corralation between Lotus Eye and Modi Rubber
Assuming the 90 days trading horizon Lotus Eye Hospital is expected to generate 0.73 times more return on investment than Modi Rubber. However, Lotus Eye Hospital is 1.37 times less risky than Modi Rubber. It trades about -0.18 of its potential returns per unit of risk. Modi Rubber Limited is currently generating about -0.16 per unit of risk. If you would invest 7,226 in Lotus Eye Hospital on October 13, 2024 and sell it today you would lose (590.00) from holding Lotus Eye Hospital or give up 8.16% 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. Modi Rubber Limited
Performance |
| Timeline |
| Lotus Eye Hospital |
| Modi Rubber Limited |
Lotus Eye and Modi Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and Modi Rubber
The main advantage of trading using opposite Lotus Eye and Modi Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye position performs unexpectedly, Modi Rubber 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 Modi Rubber will offset losses from the drop in Modi Rubber's 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 |
| Modi Rubber vs. Lotus Eye Hospital | Modi Rubber vs. Kingfa Science Technology | Modi Rubber vs. Kaynes Technology India | Modi Rubber vs. Syrma SGS Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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