Correlation Between LLOYDS METALS and Hindware Home

Can any of the company-specific risk be diversified away by investing in both LLOYDS METALS and Hindware Home at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LLOYDS METALS and Hindware Home into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LLOYDS METALS AND and Hindware Home Innovation, you can compare the effects of market volatilities on LLOYDS METALS and Hindware Home 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 LLOYDS METALS with a short position of Hindware Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS METALS and Hindware Home.

Diversification Opportunities for LLOYDS METALS and Hindware Home

0.95

Correlation Coefficient

LLOYDS METALS  Hindware Home

Almost no diversification

The 3 months correlation between LLOYDS and Hindware is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS METALS AND and Hindware Home Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hindware Home Innovation and LLOYDS METALS 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 LLOYDS METALS AND are associated (or correlated) with Hindware Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hindware Home Innovation has no effect on the direction of LLOYDS METALS i.e., LLOYDS METALS and Hindware Home go up and down completely randomly.

Pair Corralation between LLOYDS METALS and Hindware Home

Assuming the 90 days trading horizon LLOYDS METALS is expected to generate 2.26 times less return on investment than Hindware Home. In addition to that, LLOYDS METALS is 1.0 times more volatile than Hindware Home Innovation. It trades about 0.09 of its total potential returns per unit of risk. Hindware Home Innovation is currently generating about 0.2 per unit of volatility. If you would invest  20,291  in Hindware Home Innovation on April 22, 2025 and sell it today you would earn a total of  6,399  from holding Hindware Home Innovation or generate 31.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.46%
Values	Daily Returns

LLOYDS METALS AND  vs.  Hindware Home Innovation

LLOYDS METALS AND

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in LLOYDS METALS AND are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, LLOYDS METALS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Hindware Home Innovation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hindware Home Innovation are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Hindware Home reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LLOYDS METALS and Hindware Home

The main advantage of trading using opposite LLOYDS METALS and Hindware Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS METALS position performs unexpectedly, Hindware Home 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 Hindware Home will offset losses from the drop in Hindware Home's long position.

The idea behind LLOYDS METALS AND and Hindware Home Innovation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.