Correlation Between LT Foods and ITI
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By analyzing existing cross correlation between LT Foods Limited and ITI Limited, you can compare the effects of market volatilities on LT Foods and ITI 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 ITI. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Foods and ITI.
Diversification Opportunities for LT Foods and ITI
Very weak diversification
The 3 months correlation between LTFOODS and ITI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding LT Foods Limited and ITI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITI 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 ITI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITI Limited has no effect on the direction of LT Foods i.e., LT Foods and ITI go up and down completely randomly.
Pair Corralation between LT Foods and ITI
Assuming the 90 days trading horizon LT Foods Limited is expected to under-perform the ITI. But the stock apears to be less risky and, when comparing its historical volatility, LT Foods Limited is 3.05 times less risky than ITI. The stock trades about -0.11 of its potential returns per unit of risk. The ITI Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 38,990 in ITI Limited on October 11, 2024 and sell it today you would earn a total of 5,050 from holding ITI Limited or generate 12.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LT Foods Limited vs. ITI Limited
Performance |
| Timeline |
| LT Foods Limited |
| ITI Limited |
LT Foods and ITI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Foods and ITI
The main advantage of trading using opposite LT Foods and ITI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Foods position performs unexpectedly, ITI 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 ITI will offset losses from the drop in ITI's long position.| LT Foods vs. Sapphire Foods India | LT Foods vs. Eros International Media | LT Foods vs. HT Media Limited | LT Foods vs. Silly Monks Entertainment |
| ITI vs. Blue Coast Hotels | ITI vs. SINCLAIRS HOTELS ORD | ITI vs. EIH Associated Hotels | ITI vs. Viceroy Hotels 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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