Correlation Between AXISCADES Technologies and Centum Electronics
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By analyzing existing cross correlation between AXISCADES Technologies Limited and Centum Electronics Limited, you can compare the effects of market volatilities on AXISCADES Technologies 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 AXISCADES Technologies with a short position of Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXISCADES Technologies and Centum Electronics.
Diversification Opportunities for AXISCADES Technologies and Centum Electronics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AXISCADES and Centum is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AXISCADES Technologies Limited and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics and AXISCADES Technologies 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 AXISCADES Technologies Limited 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 AXISCADES Technologies i.e., AXISCADES Technologies and Centum Electronics go up and down completely randomly.
Pair Corralation between AXISCADES Technologies and Centum Electronics
Assuming the 90 days trading horizon AXISCADES Technologies is expected to generate 1.74 times less return on investment than Centum Electronics. In addition to that, AXISCADES Technologies is 1.03 times more volatile than Centum Electronics Limited. It trades about 0.01 of its total potential returns per unit of risk. Centum Electronics Limited is currently generating about 0.03 per unit of volatility. If you would invest 159,165 in Centum Electronics Limited on November 5, 2024 and sell it today you would earn a total of 12,255 from holding Centum Electronics Limited or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
AXISCADES Technologies Limited vs. Centum Electronics Limited
Performance |
| Timeline |
| AXISCADES Technologies |
| Centum Electronics |
AXISCADES Technologies and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXISCADES Technologies and Centum Electronics
The main advantage of trading using opposite AXISCADES Technologies and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXISCADES Technologies 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.| AXISCADES Technologies vs. Reliance Industries Limited | AXISCADES Technologies vs. Oil Natural Gas | AXISCADES Technologies vs. Power Finance | AXISCADES Technologies vs. Indian Oil |
| Centum Electronics vs. Ortel Communications Limited | Centum Electronics vs. Sintex Plastics Technology | Centum Electronics vs. Hemisphere Properties India | Centum Electronics vs. DMCC SPECIALITY CHEMICALS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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