Correlation Between Agro Tech and Centum Electronics
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By analyzing existing cross correlation between Agro Tech Foods and Centum Electronics Limited, you can compare the effects of market volatilities on Agro Tech and Centum Electronics 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 Agro Tech with a short position of Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Tech and Centum Electronics.
Diversification Opportunities for Agro Tech and Centum Electronics
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agro and Centum is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Agro Tech Foods and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics and Agro Tech 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 Agro Tech Foods are associated (or correlated) with Centum Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centum Electronics has no effect on the direction of Agro Tech i.e., Agro Tech and Centum Electronics go up and down completely randomly.
Pair Corralation between Agro Tech and Centum Electronics
Assuming the 90 days trading horizon Agro Tech Foods is expected to generate 0.52 times more return on investment than Centum Electronics. However, Agro Tech Foods is 1.93 times less risky than Centum Electronics. It trades about -0.07 of its potential returns per unit of risk. Centum Electronics Limited is currently generating about -0.34 per unit of risk. If you would invest 83,365 in Agro Tech Foods on November 27, 2024 and sell it today you would lose (2,645) from holding Agro Tech Foods or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agro Tech Foods vs. Centum Electronics Limited
Performance |
| Timeline |
| Agro Tech Foods |
| Centum Electronics |
Agro Tech and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Tech and Centum Electronics
The main advantage of trading using opposite Agro Tech and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Tech position performs unexpectedly, Centum Electronics 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 Centum Electronics will offset losses from the drop in Centum Electronics' long position.| Agro Tech vs. Jindal Drilling And | Agro Tech vs. DMCC SPECIALITY CHEMICALS | Agro Tech vs. Dharani SugarsChemicals Limited | Agro Tech vs. Zuari Agro Chemicals |
| Centum Electronics vs. Navneet Education Limited | Centum Electronics vs. Usha Martin Education | Centum Electronics vs. Tree House Education | Centum Electronics vs. Sonata Software 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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