Correlation Between Lotus Eye and REC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lotus Eye Hospital and REC Limited, you can compare the effects of market volatilities on Lotus Eye and REC 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 REC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and REC.
Diversification Opportunities for Lotus Eye and REC
Poor diversification
The 3 months correlation between Lotus and REC is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital and REC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REC 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 REC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REC Limited has no effect on the direction of Lotus Eye i.e., Lotus Eye and REC go up and down completely randomly.
Pair Corralation between Lotus Eye and REC
Assuming the 90 days trading horizon Lotus Eye Hospital is expected to generate 0.5 times more return on investment than REC. However, Lotus Eye Hospital is 2.0 times less risky than REC. It trades about -0.12 of its potential returns per unit of risk. REC Limited is currently generating about -0.16 per unit of risk. If you would invest 7,002 in Lotus Eye Hospital on November 9, 2024 and sell it today you would lose (382.00) from holding Lotus Eye Hospital or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Eye Hospital vs. REC Limited
Performance |
| Timeline |
| Lotus Eye Hospital |
| REC Limited |
Lotus Eye and REC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and REC
The main advantage of trading using opposite Lotus Eye and REC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye position performs unexpectedly, REC 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 REC will offset losses from the drop in REC's long position.| Lotus Eye vs. Tata Steel Limited | Lotus Eye vs. Prakash Steelage Limited | Lotus Eye vs. DMCC SPECIALITY CHEMICALS | Lotus Eye vs. Visa Steel Limited |
| REC vs. Hisar Metal Industries | REC vs. Syrma SGS Technology | REC vs. Computer Age Management | REC vs. Indian Metals Ferro |
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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |