Correlation Between Centum Electronics and MIRC Electronics
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By analyzing existing cross correlation between Centum Electronics Limited and MIRC Electronics Limited, you can compare the effects of market volatilities on Centum Electronics and MIRC 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 Centum Electronics with a short position of MIRC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and MIRC Electronics.
Diversification Opportunities for Centum Electronics and MIRC Electronics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centum and MIRC is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and MIRC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRC Electronics 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 MIRC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRC Electronics has no effect on the direction of Centum Electronics i.e., Centum Electronics and MIRC Electronics go up and down completely randomly.
Pair Corralation between Centum Electronics and MIRC Electronics
Assuming the 90 days trading horizon Centum Electronics Limited is expected to generate 1.2 times more return on investment than MIRC Electronics. However, Centum Electronics is 1.2 times more volatile than MIRC Electronics Limited. It trades about -0.01 of its potential returns per unit of risk. MIRC Electronics Limited is currently generating about -0.11 per unit of risk. If you would invest 189,630 in Centum Electronics Limited on November 2, 2024 and sell it today you would lose (19,180) from holding Centum Electronics Limited or give up 10.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centum Electronics Limited vs. MIRC Electronics Limited
Performance |
| Timeline |
| Centum Electronics |
| MIRC Electronics |
Centum Electronics and MIRC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and MIRC Electronics
The main advantage of trading using opposite Centum Electronics and MIRC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, MIRC 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 MIRC Electronics will offset losses from the drop in MIRC Electronics' long position.| Centum Electronics vs. Pritish Nandy Communications | Centum Electronics vs. Spencers Retail Limited | Centum Electronics vs. UTI Asset Management | Centum Electronics vs. Associated Alcohols Breweries |
| MIRC Electronics vs. Entertainment Network Limited | MIRC Electronics vs. DJ Mediaprint Logistics | MIRC Electronics vs. KNR Constructions Limited | MIRC Electronics vs. Hindustan Media Ventures |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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