Correlation Between Lux Industries and Akme Fintrade
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By analyzing existing cross correlation between Lux Industries Limited and Akme Fintrade India, you can compare the effects of market volatilities on Lux Industries and Akme Fintrade 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 Lux Industries with a short position of Akme Fintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lux Industries and Akme Fintrade.
Diversification Opportunities for Lux Industries and Akme Fintrade
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lux and Akme is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lux Industries Limited and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and Lux Industries 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 Lux Industries Limited are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of Lux Industries i.e., Lux Industries and Akme Fintrade go up and down completely randomly.
Pair Corralation between Lux Industries and Akme Fintrade
Assuming the 90 days trading horizon Lux Industries Limited is expected to generate 0.69 times more return on investment than Akme Fintrade. However, Lux Industries Limited is 1.46 times less risky than Akme Fintrade. It trades about 0.02 of its potential returns per unit of risk. Akme Fintrade India is currently generating about -0.06 per unit of risk. If you would invest 169,590 in Lux Industries Limited on September 5, 2024 and sell it today you would earn a total of 23,200 from holding Lux Industries Limited or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 23.36% |
| Values | Daily Returns |
Lux Industries Limited vs. Akme Fintrade India
Performance |
| Timeline |
| Lux Industries |
| Akme Fintrade India |
Lux Industries and Akme Fintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lux Industries and Akme Fintrade
The main advantage of trading using opposite Lux Industries and Akme Fintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lux Industries position performs unexpectedly, Akme Fintrade 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 Akme Fintrade will offset losses from the drop in Akme Fintrade's long position.| Lux Industries vs. Akme Fintrade India | Lux Industries vs. Future Retail Limited | Lux Industries vs. Spencers Retail Limited | Lux Industries vs. Nalwa Sons Investments |
| Akme Fintrade vs. Indian Railway Finance | Akme Fintrade vs. Power Finance | Akme Fintrade vs. Shriram Finance Limited | Akme Fintrade vs. Cholamandalam Investment and |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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