Correlation Between Centum Electronics and State Trading
Specify exactly 2 symbols:
By analyzing existing cross correlation between Centum Electronics Limited and The State Trading, you can compare the effects of market volatilities on Centum Electronics and State Trading 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 State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and State Trading.
Diversification Opportunities for Centum Electronics and State Trading
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Centum and State is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading 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 State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of Centum Electronics i.e., Centum Electronics and State Trading go up and down completely randomly.
Pair Corralation between Centum Electronics and State Trading
Assuming the 90 days trading horizon Centum Electronics Limited is expected to under-perform the State Trading. In addition to that, Centum Electronics is 1.08 times more volatile than The State Trading. It trades about -0.29 of its total potential returns per unit of risk. The State Trading is currently generating about -0.1 per unit of volatility. If you would invest 15,154 in The State Trading on October 26, 2024 and sell it today you would lose (1,065) from holding The State Trading or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Centum Electronics Limited vs. The State Trading
Performance |
| Timeline |
| Centum Electronics |
| State Trading |
Centum Electronics and State Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and State Trading
The main advantage of trading using opposite Centum Electronics and State Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, State Trading 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 State Trading will offset losses from the drop in State Trading's long position.| Centum Electronics vs. Jayant Agro Organics | Centum Electronics vs. LT Technology Services | Centum Electronics vs. Clean Science and | Centum Electronics vs. AXISCADES Technologies Limited |
| State Trading vs. Golden Tobacco Limited | State Trading vs. Modi Rubber Limited | State Trading vs. Sarveshwar Foods Limited | State Trading vs. Fine Organic Industries |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |