Correlation Between LUX ISLAND and NEW MAURITIUS
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By analyzing existing cross correlation between LUX ISLAND RESORTS and NEW MAURITIUS HOTELS, you can compare the effects of market volatilities on LUX ISLAND and NEW MAURITIUS 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 ISLAND with a short position of NEW MAURITIUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUX ISLAND and NEW MAURITIUS.
Diversification Opportunities for LUX ISLAND and NEW MAURITIUS
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between LUX and NEW is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding LUX ISLAND RESORTS and NEW MAURITIUS HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW MAURITIUS HOTELS and LUX ISLAND 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 ISLAND RESORTS are associated (or correlated) with NEW MAURITIUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW MAURITIUS HOTELS has no effect on the direction of LUX ISLAND i.e., LUX ISLAND and NEW MAURITIUS go up and down completely randomly.
Pair Corralation between LUX ISLAND and NEW MAURITIUS
Assuming the 90 days trading horizon LUX ISLAND RESORTS is expected to under-perform the NEW MAURITIUS. But the stock apears to be less risky and, when comparing its historical volatility, LUX ISLAND RESORTS is 1.21 times less risky than NEW MAURITIUS. The stock trades about -0.1 of its potential returns per unit of risk. The NEW MAURITIUS HOTELS is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,400 in NEW MAURITIUS HOTELS on November 4, 2024 and sell it today you would lose (10.00) from holding NEW MAURITIUS HOTELS or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LUX ISLAND RESORTS vs. NEW MAURITIUS HOTELS
Performance |
| Timeline |
| LUX ISLAND RESORTS |
| NEW MAURITIUS HOTELS |
LUX ISLAND and NEW MAURITIUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUX ISLAND and NEW MAURITIUS
The main advantage of trading using opposite LUX ISLAND and NEW MAURITIUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUX ISLAND position performs unexpectedly, NEW MAURITIUS 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 NEW MAURITIUS will offset losses from the drop in NEW MAURITIUS's long position.| LUX ISLAND vs. FINCORP INVESTMENT LTD | LUX ISLAND vs. MCB GROUP LIMITED | LUX ISLAND vs. MCB GROUP LTD | LUX ISLAND vs. LOTTOTECH LTD |
| NEW MAURITIUS vs. FINCORP INVESTMENT LTD | NEW MAURITIUS vs. MCB GROUP LIMITED | NEW MAURITIUS vs. MCB GROUP LTD | NEW MAURITIUS vs. LOTTOTECH LTD |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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