Correlation Between LT Foods and Future Retail
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By analyzing existing cross correlation between LT Foods Limited and Future Retail Limited, you can compare the effects of market volatilities on LT Foods and Future Retail 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 Future Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Foods and Future Retail.
Diversification Opportunities for LT Foods and Future Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LTFOODS and Future is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LT Foods Limited and Future Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Retail Limited 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 Future Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Retail Limited has no effect on the direction of LT Foods i.e., LT Foods and Future Retail go up and down completely randomly.
Pair Corralation between LT Foods and Future Retail
Assuming the 90 days trading horizon LT Foods Limited is expected to generate 1.09 times more return on investment than Future Retail. However, LT Foods is 1.09 times more volatile than Future Retail Limited. It trades about 0.13 of its potential returns per unit of risk. Future Retail Limited is currently generating about 0.01 per unit of risk. If you would invest 16,096 in LT Foods Limited on September 2, 2024 and sell it today you would earn a total of 23,614 from holding LT Foods Limited or generate 146.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.4% |
| Values | Daily Returns |
LT Foods Limited vs. Future Retail Limited
Performance |
| Timeline |
| LT Foods Limited |
| Future Retail Limited |
LT Foods and Future Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Foods and Future Retail
The main advantage of trading using opposite LT Foods and Future Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Foods position performs unexpectedly, Future Retail 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 Future Retail will offset losses from the drop in Future Retail's long position.| LT Foods vs. Kingfa Science Technology | LT Foods vs. Rico Auto Industries | LT Foods vs. GACM Technologies Limited | LT Foods vs. COSMO FIRST LIMITED |
| Future Retail vs. Kingfa Science Technology | Future Retail vs. Rico Auto Industries | Future Retail vs. GACM Technologies Limited | Future Retail vs. COSMO FIRST 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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