Correlation Between Centum Electronics and Akme Fintrade
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By analyzing existing cross correlation between Centum Electronics Limited and Akme Fintrade India, you can compare the effects of market volatilities on Centum Electronics and Akme Fintrade 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 Centum Electronics with a short position of Akme Fintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Akme Fintrade.
Diversification Opportunities for Centum Electronics and Akme Fintrade
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Centum and Akme is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and Centum Electronics 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 Centum Electronics Limited are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of Centum Electronics i.e., Centum Electronics and Akme Fintrade go up and down completely randomly.
Pair Corralation between Centum Electronics and Akme Fintrade
Assuming the 90 days trading horizon Centum Electronics Limited is expected to under-perform the Akme Fintrade. But the stock apears to be less risky and, when comparing its historical volatility, Centum Electronics Limited is 1.44 times less risky than Akme Fintrade. The stock trades about -0.32 of its potential returns per unit of risk. The Akme Fintrade India is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8,498 in Akme Fintrade India on November 1, 2024 and sell it today you would lose (234.00) from holding Akme Fintrade India or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centum Electronics Limited vs. Akme Fintrade India
Performance |
| Timeline |
| Centum Electronics |
| Akme Fintrade India |
Centum Electronics and Akme Fintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Akme Fintrade
The main advantage of trading using opposite Centum Electronics and Akme Fintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Akme Fintrade 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 Akme Fintrade will offset losses from the drop in Akme Fintrade's long position.| Centum Electronics vs. RBL Bank Limited | Centum Electronics vs. General Insurance | Centum Electronics vs. Reliance Communications Limited | Centum Electronics vs. Kotak Mahindra Bank |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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