Correlation Between Investment Trust and ADF Foods
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By analyzing existing cross correlation between The Investment Trust and ADF Foods Limited, you can compare the effects of market volatilities on Investment Trust and ADF 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 Investment Trust with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and ADF Foods.
Diversification Opportunities for Investment Trust and ADF Foods
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investment and ADF is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and Investment Trust 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 The Investment Trust are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of Investment Trust i.e., Investment Trust and ADF Foods go up and down completely randomly.
Pair Corralation between Investment Trust and ADF Foods
Assuming the 90 days trading horizon The Investment Trust is expected to under-perform the ADF Foods. In addition to that, Investment Trust is 1.05 times more volatile than ADF Foods Limited. It trades about -0.08 of its total potential returns per unit of risk. ADF Foods Limited is currently generating about 0.22 per unit of volatility. If you would invest 29,821 in ADF Foods Limited on September 1, 2024 and sell it today you would earn a total of 3,444 from holding ADF Foods Limited or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment Trust vs. ADF Foods Limited
Performance |
| Timeline |
| Investment Trust |
| ADF Foods Limited |
Investment Trust and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and ADF Foods
The main advantage of trading using opposite Investment Trust and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, ADF 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| Investment Trust vs. Nalwa Sons Investments | Investment Trust vs. Kalyani Investment | Investment Trust vs. Pilani Investment and | Investment Trust vs. Vardhman Holdings Limited |
| ADF Foods vs. Kingfa Science Technology | ADF Foods vs. Rico Auto Industries | ADF Foods vs. GACM Technologies Limited | ADF Foods vs. COSMO FIRST 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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