Correlation Between Elin Electronics and Parag Milk
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By analyzing existing cross correlation between Elin Electronics Limited and Parag Milk Foods, you can compare the effects of market volatilities on Elin Electronics and Parag Milk 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 Parag Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Parag Milk.
Diversification Opportunities for Elin Electronics and Parag Milk
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elin and Parag is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Parag Milk Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parag Milk Foods 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 Parag Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parag Milk Foods has no effect on the direction of Elin Electronics i.e., Elin Electronics and Parag Milk go up and down completely randomly.
Pair Corralation between Elin Electronics and Parag Milk
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the Parag Milk. In addition to that, Elin Electronics is 1.07 times more volatile than Parag Milk Foods. It trades about -0.16 of its total potential returns per unit of risk. Parag Milk Foods is currently generating about -0.04 per unit of volatility. If you would invest 19,073 in Parag Milk Foods on November 2, 2024 and sell it today you would lose (2,516) from holding Parag Milk Foods or give up 13.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elin Electronics Limited vs. Parag Milk Foods
Performance |
| Timeline |
| Elin Electronics |
| Parag Milk Foods |
Elin Electronics and Parag Milk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Parag Milk
The main advantage of trading using opposite Elin Electronics and Parag Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Parag Milk 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 Parag Milk will offset losses from the drop in Parag Milk's long position.| Elin Electronics vs. Shyam Metalics and | Elin Electronics vs. V2 Retail Limited | Elin Electronics vs. UFO Moviez India | Elin Electronics vs. Baazar Style Retail |
| Parag Milk vs. Elin Electronics Limited | Parag Milk vs. Industrial Investment Trust | Parag Milk vs. Shyam Metalics and | Parag Milk vs. Centum 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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