Correlation Between LT Foods and Kamat Hotels
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By analyzing existing cross correlation between LT Foods Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on LT Foods and Kamat Hotels 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 Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Foods and Kamat Hotels.
Diversification Opportunities for LT Foods and Kamat Hotels
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LTFOODS and Kamat is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding LT Foods Limited and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels 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 Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of LT Foods i.e., LT Foods and Kamat Hotels go up and down completely randomly.
Pair Corralation between LT Foods and Kamat Hotels
Assuming the 90 days trading horizon LT Foods Limited is expected to generate 1.0 times more return on investment than Kamat Hotels. However, LT Foods is 1.0 times more volatile than Kamat Hotels Limited. It trades about 0.12 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about 0.05 per unit of risk. If you would invest 16,096 in LT Foods Limited on October 11, 2024 and sell it today you would earn a total of 24,874 from holding LT Foods Limited or generate 154.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.45% |
| Values | Daily Returns |
LT Foods Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| LT Foods Limited |
| Kamat Hotels Limited |
LT Foods and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Foods and Kamat Hotels
The main advantage of trading using opposite LT Foods and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Foods position performs unexpectedly, Kamat Hotels 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' 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 |
| Kamat Hotels vs. Heritage Foods Limited | Kamat Hotels vs. Spencers Retail Limited | Kamat Hotels vs. Silgo Retail Limited | Kamat Hotels vs. LT Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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