Correlation Between Centum Electronics and Samhi Hotels
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By analyzing existing cross correlation between Centum Electronics Limited and Samhi Hotels Limited, you can compare the effects of market volatilities on Centum Electronics and Samhi Hotels 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 Samhi Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Samhi Hotels.
Diversification Opportunities for Centum Electronics and Samhi Hotels
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centum and Samhi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Samhi Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhi Hotels Limited 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 Samhi Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhi Hotels Limited has no effect on the direction of Centum Electronics i.e., Centum Electronics and Samhi Hotels go up and down completely randomly.
Pair Corralation between Centum Electronics and Samhi Hotels
Assuming the 90 days trading horizon Centum Electronics Limited is expected to generate 1.6 times more return on investment than Samhi Hotels. However, Centum Electronics is 1.6 times more volatile than Samhi Hotels Limited. It trades about -0.01 of its potential returns per unit of risk. Samhi Hotels Limited is currently generating about -0.04 per unit of risk. If you would invest 159,259 in Centum Electronics Limited on December 11, 2024 and sell it today you would lose (38,779) from holding Centum Electronics Limited or give up 24.35% 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. Samhi Hotels Limited
Performance |
| Timeline |
| Centum Electronics |
| Samhi Hotels Limited |
Centum Electronics and Samhi Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Samhi Hotels
The main advantage of trading using opposite Centum Electronics and Samhi Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Samhi Hotels 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 Samhi Hotels will offset losses from the drop in Samhi Hotels' long position.| Centum Electronics vs. Tata Communications Limited | ||
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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