Correlation Between NEW MAURITIUS and LUX ISLAND
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By analyzing existing cross correlation between NEW MAURITIUS HOTELS and LUX ISLAND RESORTS, you can compare the effects of market volatilities on NEW MAURITIUS and LUX ISLAND 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 NEW MAURITIUS with a short position of LUX ISLAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEW MAURITIUS and LUX ISLAND.
Diversification Opportunities for NEW MAURITIUS and LUX ISLAND
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NEW and LUX is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NEW MAURITIUS HOTELS and LUX ISLAND RESORTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUX ISLAND RESORTS and NEW MAURITIUS 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 NEW MAURITIUS HOTELS are associated (or correlated) with LUX ISLAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUX ISLAND RESORTS has no effect on the direction of NEW MAURITIUS i.e., NEW MAURITIUS and LUX ISLAND go up and down completely randomly.
Pair Corralation between NEW MAURITIUS and LUX ISLAND
Assuming the 90 days trading horizon NEW MAURITIUS HOTELS is expected to generate 1.89 times more return on investment than LUX ISLAND. However, NEW MAURITIUS is 1.89 times more volatile than LUX ISLAND RESORTS. It trades about 0.05 of its potential returns per unit of risk. LUX ISLAND RESORTS is currently generating about 0.0 per unit of risk. If you would invest 1,035 in NEW MAURITIUS HOTELS on October 25, 2024 and sell it today you would earn a total of 315.00 from holding NEW MAURITIUS HOTELS or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.02% |
| Values | Daily Returns |
NEW MAURITIUS HOTELS vs. LUX ISLAND RESORTS
Performance |
| Timeline |
| NEW MAURITIUS HOTELS |
| LUX ISLAND RESORTS |
NEW MAURITIUS and LUX ISLAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEW MAURITIUS and LUX ISLAND
The main advantage of trading using opposite NEW MAURITIUS and LUX ISLAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEW MAURITIUS position performs unexpectedly, LUX ISLAND 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 LUX ISLAND will offset losses from the drop in LUX ISLAND's long position.| NEW MAURITIUS vs. FINCORP INVESTMENT LTD | NEW MAURITIUS vs. UNIVERSAL PARTNERS LTD | NEW MAURITIUS vs. MCB GROUP LTD | NEW MAURITIUS vs. MUA LTD |
| LUX ISLAND vs. NATIONAL INVESTMENT TRUST | LUX ISLAND vs. NEW MAURITIUS HOTELS | LUX ISLAND vs. AFRICA CLEAN ENERGY | LUX ISLAND vs. PHOENIX INVESTMENT PANY |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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