Correlation Between Sportking India and LT Foods
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By analyzing existing cross correlation between Sportking India Limited and LT Foods Limited, you can compare the effects of market volatilities on Sportking India and LT Foods 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 Sportking India with a short position of LT Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportking India and LT Foods.
Diversification Opportunities for Sportking India and LT Foods
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sportking and LTFOODS is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sportking India Limited and LT Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LT Foods Limited and Sportking India 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 Sportking India Limited are associated (or correlated) with LT Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LT Foods Limited has no effect on the direction of Sportking India i.e., Sportking India and LT Foods go up and down completely randomly.
Pair Corralation between Sportking India and LT Foods
Assuming the 90 days trading horizon Sportking India Limited is expected to under-perform the LT Foods. In addition to that, Sportking India is 1.26 times more volatile than LT Foods Limited. It trades about -0.13 of its total potential returns per unit of risk. LT Foods Limited is currently generating about -0.01 per unit of volatility. If you would invest 35,176 in LT Foods Limited on August 25, 2024 and sell it today you would lose (326.00) from holding LT Foods Limited or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportking India Limited vs. LT Foods Limited
Performance |
| Timeline |
| Sportking India |
| LT Foods Limited |
Sportking India and LT Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportking India and LT Foods
The main advantage of trading using opposite Sportking India and LT Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportking India position performs unexpectedly, LT Foods 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 LT Foods will offset losses from the drop in LT Foods' long position.| Sportking India vs. EMBASSY OFFICE PARKS | Sportking India vs. Sintex Plastics Technology | Sportking India vs. Advani Hotels Resorts | Sportking India vs. Life Insurance |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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