Correlation Between Elin Electronics and GACM Technologies
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By analyzing existing cross correlation between Elin Electronics Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Elin Electronics and GACM Technologies 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 GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and GACM Technologies.
Diversification Opportunities for Elin Electronics and GACM Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elin and GACM is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies 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 GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of Elin Electronics i.e., Elin Electronics and GACM Technologies go up and down completely randomly.
Pair Corralation between Elin Electronics and GACM Technologies
Assuming the 90 days trading horizon Elin Electronics Limited is expected to generate 0.78 times more return on investment than GACM Technologies. However, Elin Electronics Limited is 1.29 times less risky than GACM Technologies. It trades about 0.03 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.03 per unit of risk. If you would invest 21,622 in Elin Electronics Limited on September 1, 2024 and sell it today you would earn a total of 229.00 from holding Elin Electronics Limited or generate 1.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Elin Electronics Limited vs. GACM Technologies Limited
Performance |
Timeline |
Elin Electronics |
GACM Technologies |
Elin Electronics and GACM Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elin Electronics and GACM Technologies
The main advantage of trading using opposite Elin Electronics and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, GACM Technologies 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 GACM Technologies will offset losses from the drop in GACM Technologies' long position.Elin Electronics vs. Reliance Industries Limited | Elin Electronics vs. HDFC Bank Limited | Elin Electronics vs. Kingfa Science Technology | Elin Electronics vs. Rico Auto Industries |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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