Correlation Between Spentex Industries and Lux Industries
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By analyzing existing cross correlation between Spentex Industries Limited and Lux Industries Limited, you can compare the effects of market volatilities on Spentex Industries and Lux Industries 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 Spentex Industries with a short position of Lux Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spentex Industries and Lux Industries.
Diversification Opportunities for Spentex Industries and Lux Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spentex and Lux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spentex Industries Limited and Lux Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lux Industries and Spentex 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 Spentex Industries Limited are associated (or correlated) with Lux Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lux Industries has no effect on the direction of Spentex Industries i.e., Spentex Industries and Lux Industries go up and down completely randomly.
Pair Corralation between Spentex Industries and Lux Industries
Assuming the 90 days trading horizon Spentex Industries Limited is expected to generate 24.12 times more return on investment than Lux Industries. However, Spentex Industries is 24.12 times more volatile than Lux Industries Limited. It trades about 0.07 of its potential returns per unit of risk. Lux Industries Limited is currently generating about 0.08 per unit of risk. If you would invest 235.00 in Spentex Industries Limited on September 14, 2024 and sell it today you would earn a total of 27,765 from holding Spentex Industries Limited or generate 11814.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Spentex Industries Limited vs. Lux Industries Limited
Performance |
| Timeline |
| Spentex Industries |
| Lux Industries |
Spentex Industries and Lux Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spentex Industries and Lux Industries
The main advantage of trading using opposite Spentex Industries and Lux Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spentex Industries position performs unexpectedly, Lux Industries 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 Industries will offset losses from the drop in Lux Industries' long position.| Spentex Industries vs. Patanjali Foods Limited | Spentex Industries vs. Varun Beverages Limited | Spentex Industries vs. Univa Foods Limited | Spentex Industries vs. Heritage Foods Limited |
| Lux Industries vs. KIOCL Limited | Lux Industries vs. Spentex Industries Limited | Lux Industries vs. Punjab Sind Bank | Lux Industries vs. ITI Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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