Correlation Between LT Foods and Akme Fintrade
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By analyzing existing cross correlation between LT Foods Limited and Akme Fintrade India, you can compare the effects of market volatilities on LT Foods and Akme Fintrade 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 LT Foods with a short position of Akme Fintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Foods and Akme Fintrade.
Diversification Opportunities for LT Foods and Akme Fintrade
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LTFOODS and Akme is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding LT Foods Limited and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and LT Foods 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 LT Foods Limited are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of LT Foods i.e., LT Foods and Akme Fintrade go up and down completely randomly.
Pair Corralation between LT Foods and Akme Fintrade
Assuming the 90 days trading horizon LT Foods Limited is expected to generate 1.1 times more return on investment than Akme Fintrade. However, LT Foods is 1.1 times more volatile than Akme Fintrade India. It trades about -0.12 of its potential returns per unit of risk. Akme Fintrade India is currently generating about -0.67 per unit of risk. If you would invest 43,150 in LT Foods Limited on October 14, 2024 and sell it today you would lose (2,875) from holding LT Foods Limited or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LT Foods Limited vs. Akme Fintrade India
Performance |
| Timeline |
| LT Foods Limited |
| Akme Fintrade India |
LT Foods and Akme Fintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Foods and Akme Fintrade
The main advantage of trading using opposite LT Foods and Akme Fintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Foods position performs unexpectedly, Akme Fintrade 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 Akme Fintrade will offset losses from the drop in Akme Fintrade's long position.| LT Foods vs. Jindal Poly Investment | LT Foods vs. WESTLIFE FOODWORLD LIMITED | LT Foods vs. Network18 Media Investments | LT Foods vs. Indraprastha Medical |
| Akme Fintrade vs. One 97 Communications | Akme Fintrade vs. LT Foods Limited | Akme Fintrade vs. Shyam Telecom Limited | Akme Fintrade vs. Varun Beverages Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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