Correlation Between Silly Monks and Lemon Tree
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By analyzing existing cross correlation between Silly Monks Entertainment and Lemon Tree Hotels, you can compare the effects of market volatilities on Silly Monks and Lemon Tree 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 Silly Monks with a short position of Lemon Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silly Monks and Lemon Tree.
Diversification Opportunities for Silly Monks and Lemon Tree
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silly and Lemon is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Silly Monks Entertainment and Lemon Tree Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemon Tree Hotels and Silly Monks 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 Silly Monks Entertainment are associated (or correlated) with Lemon Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemon Tree Hotels has no effect on the direction of Silly Monks i.e., Silly Monks and Lemon Tree go up and down completely randomly.
Pair Corralation between Silly Monks and Lemon Tree
Assuming the 90 days trading horizon Silly Monks Entertainment is expected to under-perform the Lemon Tree. In addition to that, Silly Monks is 1.61 times more volatile than Lemon Tree Hotels. It trades about -0.04 of its total potential returns per unit of risk. Lemon Tree Hotels is currently generating about 0.36 per unit of volatility. If you would invest 11,459 in Lemon Tree Hotels on August 30, 2024 and sell it today you would earn a total of 1,531 from holding Lemon Tree Hotels or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silly Monks Entertainment vs. Lemon Tree Hotels
Performance |
| Timeline |
| Silly Monks Entertainment |
| Lemon Tree Hotels |
Silly Monks and Lemon Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silly Monks and Lemon Tree
The main advantage of trading using opposite Silly Monks and Lemon Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silly Monks position performs unexpectedly, Lemon Tree 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 Lemon Tree will offset losses from the drop in Lemon Tree's long position.| Silly Monks vs. The Orissa Minerals | Silly Monks vs. DSJ Keep Learning | Silly Monks vs. Malu Paper Mills | Silly Monks vs. Kingfa Science Technology |
| Lemon Tree vs. ICICI Securities Limited | Lemon Tree vs. Nippon Life India | Lemon Tree vs. Fortis Healthcare Limited | Lemon Tree vs. ICICI Lombard General |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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