Correlation Between Investment Trust and ILFS Investment
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By analyzing existing cross correlation between The Investment Trust and ILFS Investment Managers, you can compare the effects of market volatilities on Investment Trust and ILFS Investment 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 ILFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and ILFS Investment.
Diversification Opportunities for Investment Trust and ILFS Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investment and ILFS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and ILFS Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILFS Investment Managers 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 ILFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILFS Investment Managers has no effect on the direction of Investment Trust i.e., Investment Trust and ILFS Investment go up and down completely randomly.
Pair Corralation between Investment Trust and ILFS Investment
Assuming the 90 days trading horizon Investment Trust is expected to generate 12.41 times less return on investment than ILFS Investment. But when comparing it to its historical volatility, The Investment Trust is 1.18 times less risky than ILFS Investment. It trades about 0.01 of its potential returns per unit of risk. ILFS Investment Managers is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,181 in ILFS Investment Managers on September 12, 2024 and sell it today you would earn a total of 41.00 from holding ILFS Investment Managers or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Investment Trust vs. ILFS Investment Managers
Performance |
| Timeline |
| Investment Trust |
| ILFS Investment Managers |
Investment Trust and ILFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and ILFS Investment
The main advantage of trading using opposite Investment Trust and ILFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, ILFS Investment 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 ILFS Investment will offset losses from the drop in ILFS Investment's long position.| Investment Trust vs. Steel Authority of | Investment Trust vs. Vibhor Steel Tubes | Investment Trust vs. Visa Steel Limited | Investment Trust vs. The Federal Bank |
| ILFS Investment vs. Reliance Industries Limited | ILFS Investment vs. Life Insurance | ILFS Investment vs. Indo Borax Chemicals | ILFS Investment vs. Kingfa Science Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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