Correlation Between Elin Electronics and Patanjali Foods
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By analyzing existing cross correlation between Elin Electronics Limited and Patanjali Foods Limited, you can compare the effects of market volatilities on Elin Electronics and Patanjali Foods 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 Patanjali Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Patanjali Foods.
Diversification Opportunities for Elin Electronics and Patanjali Foods
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elin and Patanjali is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and Patanjali Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patanjali 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 Patanjali Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patanjali Foods has no effect on the direction of Elin Electronics i.e., Elin Electronics and Patanjali Foods go up and down completely randomly.
Pair Corralation between Elin Electronics and Patanjali Foods
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the Patanjali Foods. In addition to that, Elin Electronics is 2.19 times more volatile than Patanjali Foods Limited. It trades about -0.27 of its total potential returns per unit of risk. Patanjali Foods Limited is currently generating about 0.05 per unit of volatility. If you would invest 183,570 in Patanjali Foods Limited on October 12, 2024 and sell it today you would earn a total of 2,275 from holding Patanjali Foods Limited or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elin Electronics Limited vs. Patanjali Foods Limited
Performance |
| Timeline |
| Elin Electronics |
| Patanjali Foods |
Elin Electronics and Patanjali Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Patanjali Foods
The main advantage of trading using opposite Elin Electronics and Patanjali Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, Patanjali Foods 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 Patanjali Foods will offset losses from the drop in Patanjali Foods' long position.| Elin Electronics vs. Som Distilleries Breweries | Elin Electronics vs. Indian Card Clothing | Elin Electronics vs. S P Apparels | Elin Electronics vs. Kewal Kiran Clothing |
| Patanjali Foods vs. Elin Electronics Limited | Patanjali Foods vs. One 97 Communications | Patanjali Foods vs. Salzer Electronics Limited | Patanjali Foods vs. Avonmore Capital Management |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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