Correlation Between Elin Electronics and Jtekt India
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By analyzing existing cross correlation between Elin Electronics Limited and Jtekt India Limited, you can compare the effects of market volatilities on Elin Electronics and Jtekt India 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 Jtekt India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Jtekt India.
Diversification Opportunities for Elin Electronics and Jtekt India
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elin and Jtekt is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Jtekt India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jtekt India 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 Jtekt India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jtekt India Limited has no effect on the direction of Elin Electronics i.e., Elin Electronics and Jtekt India go up and down completely randomly.
Pair Corralation between Elin Electronics and Jtekt India
Assuming the 90 days trading horizon Elin Electronics Limited is expected to generate 1.12 times more return on investment than Jtekt India. However, Elin Electronics is 1.12 times more volatile than Jtekt India Limited. It trades about 0.07 of its potential returns per unit of risk. Jtekt India Limited is currently generating about 0.03 per unit of risk. If you would invest 14,995 in Elin Electronics Limited on September 14, 2024 and sell it today you would earn a total of 6,664 from holding Elin Electronics Limited or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Elin Electronics Limited vs. Jtekt India Limited
Performance |
| Timeline |
| Elin Electronics |
| Jtekt India Limited |
Elin Electronics and Jtekt India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Jtekt India
The main advantage of trading using opposite Elin Electronics and Jtekt India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Jtekt India 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 Jtekt India will offset losses from the drop in Jtekt India'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 |
| Jtekt India vs. Hindcon Chemicals Limited | Jtekt India vs. Teamlease Services Limited | Jtekt India vs. Osia Hyper Retail | Jtekt India vs. Vishnu Chemicals 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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