Correlation Between Elin Electronics and Intellect Design
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By analyzing existing cross correlation between Elin Electronics Limited and Intellect Design Arena, you can compare the effects of market volatilities on Elin Electronics and Intellect Design 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 Intellect Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Intellect Design.
Diversification Opportunities for Elin Electronics and Intellect Design
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elin and Intellect is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Intellect Design Arena in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellect Design Arena 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 Intellect Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellect Design Arena has no effect on the direction of Elin Electronics i.e., Elin Electronics and Intellect Design go up and down completely randomly.
Pair Corralation between Elin Electronics and Intellect Design
Assuming the 90 days trading horizon Elin Electronics is expected to generate 3.66 times less return on investment than Intellect Design. But when comparing it to its historical volatility, Elin Electronics Limited is 1.19 times less risky than Intellect Design. It trades about 0.12 of its potential returns per unit of risk. Intellect Design Arena is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 71,705 in Intellect Design Arena on September 14, 2024 and sell it today you would earn a total of 13,390 from holding Intellect Design Arena or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elin Electronics Limited vs. Intellect Design Arena
Performance |
| Timeline |
| Elin Electronics |
| Intellect Design Arena |
Elin Electronics and Intellect Design Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Intellect Design
The main advantage of trading using opposite Elin Electronics and Intellect Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Intellect Design 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 Intellect Design will offset losses from the drop in Intellect Design's long position.| Elin Electronics vs. Reliance Industries Limited | Elin Electronics vs. Oil Natural Gas | Elin Electronics vs. ICICI Bank Limited | Elin Electronics vs. Bharti Airtel Limited |
| Intellect Design vs. MIRC Electronics Limited | Intellect Design vs. Salzer Electronics Limited | Intellect Design vs. POWERGRID Infrastructure Investment | Intellect Design vs. Elin Electronics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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