Correlation Between Sukhjit Starch and Lakshmi Finance
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By analyzing existing cross correlation between Sukhjit Starch Chemicals and Lakshmi Finance Industrial, you can compare the effects of market volatilities on Sukhjit Starch 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 Sukhjit Starch with a short position of Lakshmi Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sukhjit Starch and Lakshmi Finance.
Diversification Opportunities for Sukhjit Starch and Lakshmi Finance
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sukhjit and Lakshmi is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sukhjit Starch Chemicals 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 Sukhjit Starch 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 Sukhjit Starch Chemicals 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 Sukhjit Starch i.e., Sukhjit Starch and Lakshmi Finance go up and down completely randomly.
Pair Corralation between Sukhjit Starch and Lakshmi Finance
Assuming the 90 days trading horizon Sukhjit Starch Chemicals is expected to generate 2.51 times more return on investment than Lakshmi Finance. However, Sukhjit Starch is 2.51 times more volatile than Lakshmi Finance Industrial. It trades about 0.04 of its potential returns per unit of risk. Lakshmi Finance Industrial is currently generating about 0.05 per unit of risk. If you would invest 18,214 in Sukhjit Starch Chemicals on November 5, 2024 and sell it today you would earn a total of 4,481 from holding Sukhjit Starch Chemicals or generate 24.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sukhjit Starch Chemicals vs. Lakshmi Finance Industrial
Performance |
| Timeline |
| Sukhjit Starch Chemicals |
| Lakshmi Finance Indu |
Sukhjit Starch and Lakshmi Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sukhjit Starch and Lakshmi Finance
The main advantage of trading using opposite Sukhjit Starch and Lakshmi Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sukhjit Starch 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.| Sukhjit Starch vs. NMDC Limited | Sukhjit Starch vs. Steel Authority of | Sukhjit Starch vs. Embassy Office Parks | Sukhjit Starch vs. Jai Balaji Industries |
| Lakshmi Finance vs. Diligent Media | Lakshmi Finance vs. Eros International Media | Lakshmi Finance vs. Ankit Metal Power | Lakshmi Finance vs. Ratnamani Metals Tubes |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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