Correlation Between Investment Trust and Future Retail
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By analyzing existing cross correlation between The Investment Trust and Future Retail Limited, you can compare the effects of market volatilities on Investment Trust and Future Retail 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 Future Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and Future Retail.
Diversification Opportunities for Investment Trust and Future Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Future is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and Future Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Retail 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 Future Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Retail Limited has no effect on the direction of Investment Trust i.e., Investment Trust and Future Retail go up and down completely randomly.
Pair Corralation between Investment Trust and Future Retail
Assuming the 90 days trading horizon The Investment Trust is expected to generate 1.08 times more return on investment than Future Retail. However, Investment Trust is 1.08 times more volatile than Future Retail Limited. It trades about 0.08 of its potential returns per unit of risk. Future Retail Limited is currently generating about -0.02 per unit of risk. If you would invest 8,690 in The Investment Trust on September 29, 2024 and sell it today you would earn a total of 11,120 from holding The Investment Trust or generate 127.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.1% |
| Values | Daily Returns |
The Investment Trust vs. Future Retail Limited
Performance |
| Timeline |
| Investment Trust |
| Future Retail Limited |
Investment Trust and Future Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and Future Retail
The main advantage of trading using opposite Investment Trust and Future Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, Future Retail 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 Future Retail will offset losses from the drop in Future Retail's long position.| Investment Trust vs. Patanjali Foods Limited | Investment Trust vs. Sonata Software Limited | Investment Trust vs. FCS Software Solutions | Investment Trust vs. Future Retail Limited |
| Future Retail vs. Zee Entertainment Enterprises | Future Retail vs. The Investment Trust | Future Retail vs. Entertainment Network Limited | Future Retail vs. Cyber Media Research |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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