Correlation Between Lumia and Exxaro Tiles
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By analyzing existing cross correlation between Lumia and Exxaro Tiles Limited, you can compare the effects of market volatilities on Lumia and Exxaro Tiles 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 Lumia with a short position of Exxaro Tiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Exxaro Tiles.
Diversification Opportunities for Lumia and Exxaro Tiles
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lumia and Exxaro is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Exxaro Tiles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxaro Tiles Limited and Lumia 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 Lumia are associated (or correlated) with Exxaro Tiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxaro Tiles Limited has no effect on the direction of Lumia i.e., Lumia and Exxaro Tiles go up and down completely randomly.
Pair Corralation between Lumia and Exxaro Tiles
Assuming the 90 days trading horizon Lumia is expected to under-perform the Exxaro Tiles. In addition to that, Lumia is 2.17 times more volatile than Exxaro Tiles Limited. It trades about -0.14 of its total potential returns per unit of risk. Exxaro Tiles Limited is currently generating about 0.12 per unit of volatility. If you would invest 927.00 in Exxaro Tiles Limited on October 20, 2024 and sell it today you would earn a total of 72.00 from holding Exxaro Tiles Limited or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lumia vs. Exxaro Tiles Limited
Performance |
| Timeline |
| Lumia |
| Exxaro Tiles Limited |
Lumia and Exxaro Tiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Exxaro Tiles
The main advantage of trading using opposite Lumia and Exxaro Tiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Exxaro Tiles 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 Exxaro Tiles will offset losses from the drop in Exxaro Tiles' long position.The idea behind Lumia and Exxaro Tiles Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Exxaro Tiles vs. Industrial Investment Trust | Exxaro Tiles vs. Ravi Kumar Distilleries | Exxaro Tiles vs. Shaily Engineering Plastics | Exxaro Tiles vs. Alkali Metals 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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