Correlation Between Lotus Eye and UCO Bank
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By analyzing existing cross correlation between Lotus Eye Hospital and UCO Bank, you can compare the effects of market volatilities on Lotus Eye and UCO Bank 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 UCO Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and UCO Bank.
Diversification Opportunities for Lotus Eye and UCO Bank
Poor diversification
The 3 months correlation between Lotus and UCO is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital and UCO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCO Bank 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 UCO Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCO Bank has no effect on the direction of Lotus Eye i.e., Lotus Eye and UCO Bank go up and down completely randomly.
Pair Corralation between Lotus Eye and UCO Bank
Assuming the 90 days trading horizon Lotus Eye Hospital is expected to generate 1.07 times more return on investment than UCO Bank. However, Lotus Eye is 1.07 times more volatile than UCO Bank. It trades about -0.16 of its potential returns per unit of risk. UCO Bank is currently generating about -0.46 per unit of risk. If you would invest 7,262 in Lotus Eye Hospital on October 16, 2024 and sell it today you would lose (545.00) from holding Lotus Eye Hospital or give up 7.5% 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. UCO Bank
Performance |
| Timeline |
| Lotus Eye Hospital |
| UCO Bank |
Lotus Eye and UCO Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and UCO Bank
The main advantage of trading using opposite Lotus Eye and UCO Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye position performs unexpectedly, UCO Bank 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 UCO Bank will offset losses from the drop in UCO Bank's long position.| Lotus Eye vs. Hilton Metal Forging | Lotus Eye vs. Iris Clothings Limited | Lotus Eye vs. Hisar Metal Industries | Lotus Eye vs. Total Transport Systems |
| UCO Bank vs. Alkali Metals Limited | UCO Bank vs. Sarthak Metals Limited | UCO Bank vs. Datamatics Global Services | UCO Bank vs. Manaksia Coated Metals |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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