Correlation Between Centum Electronics and Styrenix Performance
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By analyzing existing cross correlation between Centum Electronics Limited and Styrenix Performance Materials, you can compare the effects of market volatilities on Centum Electronics and Styrenix Performance 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 Styrenix Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Styrenix Performance.
Diversification Opportunities for Centum Electronics and Styrenix Performance
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centum and Styrenix is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Styrenix Performance Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Styrenix Performance 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 Styrenix Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Styrenix Performance has no effect on the direction of Centum Electronics i.e., Centum Electronics and Styrenix Performance go up and down completely randomly.
Pair Corralation between Centum Electronics and Styrenix Performance
Assuming the 90 days trading horizon Centum Electronics Limited is expected to under-perform the Styrenix Performance. In addition to that, Centum Electronics is 1.85 times more volatile than Styrenix Performance Materials. It trades about -0.29 of its total potential returns per unit of risk. Styrenix Performance Materials is currently generating about -0.28 per unit of volatility. If you would invest 305,930 in Styrenix Performance Materials on October 20, 2024 and sell it today you would lose (32,720) from holding Styrenix Performance Materials or give up 10.7% 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. Styrenix Performance Materials
Performance |
| Timeline |
| Centum Electronics |
| Styrenix Performance |
Centum Electronics and Styrenix Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centum Electronics and Styrenix Performance
The main advantage of trading using opposite Centum Electronics and Styrenix Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Styrenix Performance 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 Styrenix Performance will offset losses from the drop in Styrenix Performance's long position.| Centum Electronics vs. Taj GVK Hotels | Centum Electronics vs. Industrial Investment Trust | Centum Electronics vs. The Indian Hotels | Centum Electronics vs. SIL Investments 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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