Correlation Between LT Technology and Mold Tek
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By analyzing existing cross correlation between LT Technology Services and Mold Tek Packaging Limited, you can compare the effects of market volatilities on LT Technology and Mold Tek 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 Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Technology and Mold Tek.
Diversification Opportunities for LT Technology and Mold Tek
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LTTS and Mold is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding LT Technology Services and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging 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 Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of LT Technology i.e., LT Technology and Mold Tek go up and down completely randomly.
Pair Corralation between LT Technology and Mold Tek
Assuming the 90 days trading horizon LT Technology is expected to generate 2.1 times less return on investment than Mold Tek. But when comparing it to its historical volatility, LT Technology Services is 1.87 times less risky than Mold Tek. It trades about 0.07 of its potential returns per unit of risk. Mold Tek Packaging Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 69,555 in Mold Tek Packaging Limited on September 13, 2024 and sell it today you would earn a total of 2,615 from holding Mold Tek Packaging Limited or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
LT Technology Services vs. Mold Tek Packaging Limited
Performance |
| Timeline |
| LT Technology Services |
| Mold Tek Packaging |
LT Technology and Mold Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Technology and Mold Tek
The main advantage of trading using opposite LT Technology and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Technology position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek's long position.| LT Technology vs. Vodafone Idea Limited | LT Technology vs. Yes Bank Limited | LT Technology vs. Indian Overseas Bank | LT Technology vs. Indian Oil |
| Mold Tek vs. Zee Entertainment Enterprises | Mold Tek vs. Music Broadcast Limited | Mold Tek vs. Infomedia Press Limited | Mold Tek vs. Next Mediaworks 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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