Correlation Between Elin Electronics and BF Utilities
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By analyzing existing cross correlation between Elin Electronics Limited and BF Utilities Limited, you can compare the effects of market volatilities on Elin Electronics and BF Utilities 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 Elin Electronics with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and BF Utilities.
Diversification Opportunities for Elin Electronics and BF Utilities
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Elin and BFUTILITIE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited and Elin 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 Elin Electronics Limited are associated (or correlated) with BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Elin Electronics i.e., Elin Electronics and BF Utilities go up and down completely randomly.
Pair Corralation between Elin Electronics and BF Utilities
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the BF Utilities. But the stock apears to be less risky and, when comparing its historical volatility, Elin Electronics Limited is 1.09 times less risky than BF Utilities. The stock trades about -0.39 of its potential returns per unit of risk. The BF Utilities Limited is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 94,560 in BF Utilities Limited on October 16, 2024 and sell it today you would lose (10,970) from holding BF Utilities Limited or give up 11.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elin Electronics Limited vs. BF Utilities Limited
Performance |
| Timeline |
| Elin Electronics |
| BF Utilities Limited |
Elin Electronics and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and BF Utilities
The main advantage of trading using opposite Elin Electronics and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, BF Utilities 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 BF Utilities will offset losses from the drop in BF Utilities' long position.| Elin Electronics vs. Praxis Home Retail | Elin Electronics vs. Baazar Style Retail | Elin Electronics vs. Motilal Oswal Financial | Elin Electronics vs. Spandana Sphoorty Financial |
| BF Utilities vs. Elin Electronics Limited | BF Utilities vs. Diligent Media | BF Utilities vs. HT Media Limited | BF Utilities vs. 21st Century Management |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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