Correlation Between Lumia and Sky Gold
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By analyzing existing cross correlation between Lumia and Sky Gold Limited, you can compare the effects of market volatilities on Lumia and Sky Gold 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 Sky Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Sky Gold.
Diversification Opportunities for Lumia and Sky Gold
Good diversification
The 3 months correlation between Lumia and Sky is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Sky Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Gold 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 Sky Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Gold Limited has no effect on the direction of Lumia i.e., Lumia and Sky Gold go up and down completely randomly.
Pair Corralation between Lumia and Sky Gold
Assuming the 90 days trading horizon Lumia is expected to under-perform the Sky Gold. In addition to that, Lumia is 1.86 times more volatile than Sky Gold Limited. It trades about -0.27 of its total potential returns per unit of risk. Sky Gold Limited is currently generating about -0.23 per unit of volatility. If you would invest 40,790 in Sky Gold Limited on October 24, 2024 and sell it today you would lose (6,035) from holding Sky Gold Limited or give up 14.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lumia vs. Sky Gold Limited
Performance |
| Timeline |
| Lumia |
| Sky Gold Limited |
Lumia and Sky Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Sky Gold
The main advantage of trading using opposite Lumia and Sky Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Sky Gold 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 Sky Gold will offset losses from the drop in Sky Gold's long position.The idea behind Lumia and Sky Gold 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.| Sky Gold vs. State Bank of | Sky Gold vs. Life Insurance | Sky Gold vs. HDFC Bank Limited | Sky Gold vs. ICICI Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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