Correlation Between Lux Industries and V2 Retail
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By analyzing existing cross correlation between Lux Industries Limited and V2 Retail Limited, you can compare the effects of market volatilities on Lux Industries and V2 Retail 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 V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lux Industries and V2 Retail.
Diversification Opportunities for Lux Industries and V2 Retail
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lux and V2RETAIL is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lux Industries Limited and V2 Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2 Retail Limited 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 V2 Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2 Retail Limited has no effect on the direction of Lux Industries i.e., Lux Industries and V2 Retail go up and down completely randomly.
Pair Corralation between Lux Industries and V2 Retail
Assuming the 90 days trading horizon Lux Industries Limited is expected to under-perform the V2 Retail. In addition to that, Lux Industries is 1.19 times more volatile than V2 Retail Limited. It trades about -0.35 of its total potential returns per unit of risk. V2 Retail Limited is currently generating about 0.13 per unit of volatility. If you would invest 172,885 in V2 Retail Limited on November 4, 2024 and sell it today you would earn a total of 12,920 from holding V2 Retail Limited or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lux Industries Limited vs. V2 Retail Limited
Performance |
| Timeline |
| Lux Industries |
| V2 Retail Limited |
Lux Industries and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lux Industries and V2 Retail
The main advantage of trading using opposite Lux Industries and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lux Industries position performs unexpectedly, V2 Retail 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 V2 Retail will offset losses from the drop in V2 Retail's long position.| Lux Industries vs. Manaksia Coated Metals | Lux Industries vs. Total Transport Systems | Lux Industries vs. Industrial Investment Trust | Lux Industries vs. Lakshmi Finance Industrial |
| V2 Retail vs. Khaitan Chemicals Fertilizers | V2 Retail vs. TECIL Chemicals and | V2 Retail vs. Compucom Software Limited | V2 Retail vs. Chambal Fertilizers Chemicals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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