Correlation Between Baazar Style and Lakshmi Finance
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By analyzing existing cross correlation between Baazar Style Retail and Lakshmi Finance Industrial, you can compare the effects of market volatilities on Baazar Style and Lakshmi Finance 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 Baazar Style with a short position of Lakshmi Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and Lakshmi Finance.
Diversification Opportunities for Baazar Style and Lakshmi Finance
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baazar and Lakshmi is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail and Lakshmi Finance Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakshmi Finance Indu and Baazar Style 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 Baazar Style Retail are associated (or correlated) with Lakshmi Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakshmi Finance Indu has no effect on the direction of Baazar Style i.e., Baazar Style and Lakshmi Finance go up and down completely randomly.
Pair Corralation between Baazar Style and Lakshmi Finance
Assuming the 90 days trading horizon Baazar Style Retail is expected to under-perform the Lakshmi Finance. But the stock apears to be less risky and, when comparing its historical volatility, Baazar Style Retail is 1.17 times less risky than Lakshmi Finance. The stock trades about -0.11 of its potential returns per unit of risk. The Lakshmi Finance Industrial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,159 in Lakshmi Finance Industrial on November 7, 2024 and sell it today you would earn a total of 10,340 from holding Lakshmi Finance Industrial or generate 92.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 21.44% |
| Values | Daily Returns |
Baazar Style Retail vs. Lakshmi Finance Industrial
Performance |
| Timeline |
| Baazar Style Retail |
| Lakshmi Finance Indu |
Baazar Style and Lakshmi Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baazar Style and Lakshmi Finance
The main advantage of trading using opposite Baazar Style and Lakshmi Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baazar Style position performs unexpectedly, Lakshmi Finance 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 Lakshmi Finance will offset losses from the drop in Lakshmi Finance's long position.| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Visa Steel Limited |
| Lakshmi Finance vs. MRF Limited | Lakshmi Finance vs. The Orissa Minerals | Lakshmi Finance vs. Honeywell Automation India | Lakshmi Finance vs. Page Industries 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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