Correlation Between Can Fin and Elin Electronics
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By analyzing existing cross correlation between Can Fin Homes and Elin Electronics Limited, you can compare the effects of market volatilities on Can Fin and Elin 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 Can Fin with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and Elin Electronics.
Diversification Opportunities for Can Fin and Elin Electronics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Can and Elin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics and Can Fin 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 Can Fin Homes are associated (or correlated) with Elin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elin Electronics has no effect on the direction of Can Fin i.e., Can Fin and Elin Electronics go up and down completely randomly.
Pair Corralation between Can Fin and Elin Electronics
Assuming the 90 days trading horizon Can Fin Homes is expected to generate 0.66 times more return on investment than Elin Electronics. However, Can Fin Homes is 1.51 times less risky than Elin Electronics. It trades about -0.24 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.33 per unit of risk. If you would invest 81,728 in Can Fin Homes on October 30, 2024 and sell it today you would lose (14,323) from holding Can Fin Homes or give up 17.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fin Homes vs. Elin Electronics Limited
Performance |
| Timeline |
| Can Fin Homes |
| Elin Electronics |
Can Fin and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and Elin Electronics
The main advantage of trading using opposite Can Fin and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, Elin 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 Elin Electronics will offset losses from the drop in Elin Electronics' long position.| Can Fin vs. 63 moons technologies | Can Fin vs. PB Fintech Limited | Can Fin vs. Goldstone Technologies Limited | Can Fin vs. Generic Engineering Construction |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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