Correlation Between LT Technology and BF Investment
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By analyzing existing cross correlation between LT Technology Services and BF Investment Limited, you can compare the effects of market volatilities on LT Technology and BF Investment 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 Technology with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Technology and BF Investment.
Diversification Opportunities for LT Technology and BF Investment
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between LTTS and BFINVEST is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding LT Technology Services and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment Limited and LT Technology 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 Technology Services are associated (or correlated) with BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of LT Technology i.e., LT Technology and BF Investment go up and down completely randomly.
Pair Corralation between LT Technology and BF Investment
Assuming the 90 days trading horizon LT Technology Services is expected to generate 0.57 times more return on investment than BF Investment. However, LT Technology Services is 1.77 times less risky than BF Investment. It trades about 0.06 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.02 per unit of risk. If you would invest 353,491 in LT Technology Services on November 1, 2024 and sell it today you would earn a total of 180,609 from holding LT Technology Services or generate 51.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
LT Technology Services vs. BF Investment Limited
Performance |
| Timeline |
| LT Technology Services |
| BF Investment Limited |
LT Technology and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Technology and BF Investment
The main advantage of trading using opposite LT Technology and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Technology position performs unexpectedly, BF Investment 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 BF Investment will offset losses from the drop in BF Investment's long position.| LT Technology vs. Viceroy Hotels Limited | LT Technology vs. Styrenix Performance Materials | LT Technology vs. Modi Rubber Limited | LT Technology vs. Spencers Retail Limited |
| BF Investment vs. Jaypee Infratech Limited | BF Investment vs. LT Technology Services | BF Investment vs. PYRAMID TECHNOPLAST ORD | BF Investment vs. Generic Engineering Construction |
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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