Correlation Between Centum Electronics and Blue Jet
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By analyzing existing cross correlation between Centum Electronics Limited and Blue Jet Healthcare, you can compare the effects of market volatilities on Centum Electronics and Blue Jet 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 Blue Jet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Blue Jet.
Diversification Opportunities for Centum Electronics and Blue Jet
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centum and Blue is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Blue Jet Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Jet Healthcare 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 Blue Jet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Jet Healthcare has no effect on the direction of Centum Electronics i.e., Centum Electronics and Blue Jet go up and down completely randomly.
Pair Corralation between Centum Electronics and Blue Jet
Assuming the 90 days trading horizon Centum Electronics Limited is expected to generate 2.25 times more return on investment than Blue Jet. However, Centum Electronics is 2.25 times more volatile than Blue Jet Healthcare. It trades about 0.18 of its potential returns per unit of risk. Blue Jet Healthcare is currently generating about 0.31 per unit of risk. If you would invest 166,200 in Centum Electronics Limited on October 11, 2024 and sell it today you would earn a total of 37,770 from holding Centum Electronics Limited or generate 22.73% 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. Blue Jet Healthcare
Performance |
| Timeline |
| Centum Electronics |
| Blue Jet Healthcare |
Centum Electronics and Blue Jet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Blue Jet
The main advantage of trading using opposite Centum Electronics and Blue Jet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Blue Jet 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 Blue Jet will offset losses from the drop in Blue Jet's long position.| Centum Electronics vs. Next Mediaworks Limited | Centum Electronics vs. HT Media Limited | Centum Electronics vs. The Indian Hotels | Centum Electronics vs. Samhi Hotels Limited |
| Blue Jet vs. One 97 Communications | Blue Jet vs. SIL Investments Limited | Blue Jet vs. Shyam Telecom Limited | Blue Jet vs. Jindal Poly Investment |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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