Correlation Between Centum Electronics and Amrutanjan Health
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By analyzing existing cross correlation between Centum Electronics Limited and Amrutanjan Health Care, you can compare the effects of market volatilities on Centum Electronics and Amrutanjan Health 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 Amrutanjan Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Amrutanjan Health.
Diversification Opportunities for Centum Electronics and Amrutanjan Health
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centum and Amrutanjan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Amrutanjan Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amrutanjan Health Care 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 Amrutanjan Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amrutanjan Health Care has no effect on the direction of Centum Electronics i.e., Centum Electronics and Amrutanjan Health go up and down completely randomly.
Pair Corralation between Centum Electronics and Amrutanjan Health
Assuming the 90 days trading horizon Centum Electronics Limited is expected to generate 4.04 times more return on investment than Amrutanjan Health. However, Centum Electronics is 4.04 times more volatile than Amrutanjan Health Care. It trades about 0.33 of its potential returns per unit of risk. Amrutanjan Health Care is currently generating about 0.24 per unit of risk. If you would invest 159,415 in Centum Electronics Limited on September 16, 2024 and sell it today you would earn a total of 67,770 from holding Centum Electronics Limited or generate 42.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centum Electronics Limited vs. Amrutanjan Health Care
Performance |
| Timeline |
| Centum Electronics |
| Amrutanjan Health Care |
Centum Electronics and Amrutanjan Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Amrutanjan Health
The main advantage of trading using opposite Centum Electronics and Amrutanjan Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Amrutanjan Health 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 Amrutanjan Health will offset losses from the drop in Amrutanjan Health's long position.| Centum Electronics vs. Vodafone Idea Limited | Centum Electronics vs. Yes Bank Limited | Centum Electronics vs. Indian Overseas Bank | Centum Electronics vs. Indian Oil |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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