Correlation Between Elin Electronics and Metropolis Healthcare
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By analyzing existing cross correlation between Elin Electronics Limited and Metropolis Healthcare Limited, you can compare the effects of market volatilities on Elin Electronics and Metropolis Healthcare 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 Metropolis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Metropolis Healthcare.
Diversification Opportunities for Elin Electronics and Metropolis Healthcare
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elin and Metropolis is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Metropolis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolis Healthcare 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 Metropolis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolis Healthcare has no effect on the direction of Elin Electronics i.e., Elin Electronics and Metropolis Healthcare go up and down completely randomly.
Pair Corralation between Elin Electronics and Metropolis Healthcare
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the Metropolis Healthcare. In addition to that, Elin Electronics is 1.7 times more volatile than Metropolis Healthcare Limited. It trades about -0.08 of its total potential returns per unit of risk. Metropolis Healthcare Limited is currently generating about 0.02 per unit of volatility. If you would invest 211,555 in Metropolis Healthcare Limited on September 3, 2024 and sell it today you would earn a total of 2,605 from holding Metropolis Healthcare Limited or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Elin Electronics Limited vs. Metropolis Healthcare Limited
Performance |
| Timeline |
| Elin Electronics |
| Metropolis Healthcare |
Elin Electronics and Metropolis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Metropolis Healthcare
The main advantage of trading using opposite Elin Electronics and Metropolis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Metropolis Healthcare 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 Metropolis Healthcare will offset losses from the drop in Metropolis Healthcare's long position.| Elin Electronics vs. Metropolis Healthcare Limited | Elin Electronics vs. Zuari Agro Chemicals | Elin Electronics vs. Archean Chemical Industries | Elin Electronics vs. Country Club Hospitality |
| Metropolis Healthcare vs. Life Insurance | Metropolis Healthcare vs. Power Finance | Metropolis Healthcare vs. HDFC Bank Limited | Metropolis Healthcare vs. State Bank of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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