Correlation Between Elin Electronics and Garware Hi
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By analyzing existing cross correlation between Elin Electronics Limited and Garware Hi Tech Films, you can compare the effects of market volatilities on Elin Electronics and Garware Hi 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 Garware Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Garware Hi.
Diversification Opportunities for Elin Electronics and Garware Hi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elin and Garware is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Garware Hi Tech Films in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garware Hi Tech 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 Garware Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garware Hi Tech has no effect on the direction of Elin Electronics i.e., Elin Electronics and Garware Hi go up and down completely randomly.
Pair Corralation between Elin Electronics and Garware Hi
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the Garware Hi. But the stock apears to be less risky and, when comparing its historical volatility, Elin Electronics Limited is 1.2 times less risky than Garware Hi. The stock trades about 0.0 of its potential returns per unit of risk. The Garware Hi Tech Films is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 65,511 in Garware Hi Tech Films on October 30, 2024 and sell it today you would earn a total of 282,744 from holding Garware Hi Tech Films or generate 431.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Elin Electronics Limited vs. Garware Hi Tech Films
Performance |
| Timeline |
| Elin Electronics |
| Garware Hi Tech |
Elin Electronics and Garware Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Garware Hi
The main advantage of trading using opposite Elin Electronics and Garware Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Garware Hi 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 Garware Hi will offset losses from the drop in Garware Hi's long position.| Elin Electronics vs. G Tec Jainx Education | Elin Electronics vs. Sukhjit Starch Chemicals | Elin Electronics vs. Khaitan Chemicals Fertilizers | Elin Electronics vs. Cybertech Systems And |
| Garware Hi vs. Beta Drugs | Garware Hi vs. Touchwood Entertainment Limited | Garware Hi vs. HT Media Limited | Garware Hi vs. Next Mediaworks Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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