Correlation Between Centum Electronics and Mahindra Logistics
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By analyzing existing cross correlation between Centum Electronics Limited and Mahindra Logistics Limited, you can compare the effects of market volatilities on Centum Electronics and Mahindra Logistics 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 Mahindra Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Mahindra Logistics.
Diversification Opportunities for Centum Electronics and Mahindra Logistics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Centum and Mahindra is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Mahindra Logistics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahindra Logistics 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 Mahindra Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahindra Logistics has no effect on the direction of Centum Electronics i.e., Centum Electronics and Mahindra Logistics go up and down completely randomly.
Pair Corralation between Centum Electronics and Mahindra Logistics
Assuming the 90 days trading horizon Centum Electronics Limited is expected to generate 1.29 times more return on investment than Mahindra Logistics. However, Centum Electronics is 1.29 times more volatile than Mahindra Logistics Limited. It trades about -0.02 of its potential returns per unit of risk. Mahindra Logistics Limited is currently generating about -0.04 per unit of risk. If you would invest 174,912 in Centum Electronics Limited on September 1, 2024 and sell it today you would lose (17,942) from holding Centum Electronics Limited or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Centum Electronics Limited vs. Mahindra Logistics Limited
Performance |
| Timeline |
| Centum Electronics |
| Mahindra Logistics |
Centum Electronics and Mahindra Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Mahindra Logistics
The main advantage of trading using opposite Centum Electronics and Mahindra Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Mahindra Logistics 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 Mahindra Logistics will offset losses from the drop in Mahindra Logistics' long position.| Centum Electronics vs. The Orissa Minerals | Centum Electronics vs. Malu Paper Mills | Centum Electronics vs. Kingfa Science Technology | Centum Electronics vs. Rico Auto Industries |
| Mahindra Logistics vs. Agro Tech Foods | Mahindra Logistics vs. Parag Milk Foods | Mahindra Logistics vs. Omkar Speciality Chemicals | Mahindra Logistics vs. Privi 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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