Correlation Between Stock Exchange and Lotus Retail
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Lotus Retail at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stock Exchange and Lotus Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Lotus Retail Growth, you can compare the effects of market volatilities on Stock Exchange and Lotus 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 Stock Exchange with a short position of Lotus Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Lotus Retail.
Diversification Opportunities for Stock Exchange and Lotus Retail
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stock and Lotus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Lotus Retail Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Retail Growth and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Lotus Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Retail Growth has no effect on the direction of Stock Exchange i.e., Stock Exchange and Lotus Retail go up and down completely randomly.
Pair Corralation between Stock Exchange and Lotus Retail
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Lotus Retail. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 1.72 times less risky than Lotus Retail. The index trades about -0.03 of its potential returns per unit of risk. The Lotus Retail Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,078 in Lotus Retail Growth on September 3, 2024 and sell it today you would earn a total of 192.00 from holding Lotus Retail Growth or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.55% |
| Values | Daily Returns |
Stock Exchange Of vs. Lotus Retail Growth
Performance |
| Timeline |
Stock Exchange and Lotus Retail Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Lotus Retail Growth
Pair trading matchups for Lotus Retail
Pair Trading with Stock Exchange and Lotus Retail
The main advantage of trading using opposite Stock Exchange and Lotus Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Lotus 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 Lotus Retail will offset losses from the drop in Lotus Retail's long position.| Stock Exchange vs. Siam Wellness Group | Stock Exchange vs. ABSOLUTE CLEAN ENERGY | Stock Exchange vs. Sri panwa Hospitality | Stock Exchange vs. 2S Metal Public |
| Lotus Retail vs. CPN Retail Growth | Lotus Retail vs. Ticon Freehold and | Lotus Retail vs. WHA Premium Growth | Lotus Retail vs. Major Cineplex Lifestyle |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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