Correlation Between Elin Electronics and Grindwell Norton
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By analyzing existing cross correlation between Elin Electronics Limited and Grindwell Norton Limited, you can compare the effects of market volatilities on Elin Electronics and Grindwell Norton 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 Grindwell Norton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Grindwell Norton.
Diversification Opportunities for Elin Electronics and Grindwell Norton
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elin and Grindwell is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Grindwell Norton Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindwell Norton 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 Grindwell Norton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindwell Norton has no effect on the direction of Elin Electronics i.e., Elin Electronics and Grindwell Norton go up and down completely randomly.
Pair Corralation between Elin Electronics and Grindwell Norton
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the Grindwell Norton. In addition to that, Elin Electronics is 2.16 times more volatile than Grindwell Norton Limited. It trades about -0.26 of its total potential returns per unit of risk. Grindwell Norton Limited is currently generating about -0.01 per unit of volatility. If you would invest 193,920 in Grindwell Norton Limited on November 3, 2024 and sell it today you would lose (1,175) from holding Grindwell Norton Limited or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elin Electronics Limited vs. Grindwell Norton Limited
Performance |
| Timeline |
| Elin Electronics |
| Grindwell Norton |
Elin Electronics and Grindwell Norton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Grindwell Norton
The main advantage of trading using opposite Elin Electronics and Grindwell Norton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Grindwell Norton 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 Grindwell Norton will offset losses from the drop in Grindwell Norton's long position.| Elin Electronics vs. Akums Drugs and | Elin Electronics vs. NMDC Steel Limited | Elin Electronics vs. Mahamaya Steel Industries | Elin Electronics vs. Action Construction Equipment |
| Grindwell Norton vs. Rajnandini Metal Limited | Grindwell Norton vs. Silver Touch Technologies | Grindwell Norton vs. NRB Industrial Bearings | Grindwell Norton vs. Hilton Metal Forging |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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