Correlation Between Elin Electronics and POWERGRID Infrastructure
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By analyzing existing cross correlation between Elin Electronics Limited and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on Elin Electronics and POWERGRID Infrastructure 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 POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and POWERGRID Infrastructure.
Diversification Opportunities for Elin Electronics and POWERGRID Infrastructure
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elin and POWERGRID is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure 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 POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Elin Electronics i.e., Elin Electronics and POWERGRID Infrastructure go up and down completely randomly.
Pair Corralation between Elin Electronics and POWERGRID Infrastructure
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the POWERGRID Infrastructure. In addition to that, Elin Electronics is 5.07 times more volatile than POWERGRID Infrastructure Investment. It trades about -0.37 of its total potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about -0.46 per unit of volatility. If you would invest 8,701 in POWERGRID Infrastructure Investment on October 16, 2024 and sell it today you would lose (492.00) from holding POWERGRID Infrastructure Investment or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elin Electronics Limited vs. POWERGRID Infrastructure Inves
Performance |
| Timeline |
| Elin Electronics |
| POWERGRID Infrastructure |
Elin Electronics and POWERGRID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and POWERGRID Infrastructure
The main advantage of trading using opposite Elin Electronics and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.| Elin Electronics vs. Bajaj Holdings Investment | Elin Electronics vs. Tata Investment | Elin Electronics vs. The Investment Trust | Elin Electronics vs. Can Fin Homes |
| POWERGRID Infrastructure vs. Sarthak Metals Limited | POWERGRID Infrastructure vs. Gokul Refoils and | POWERGRID Infrastructure vs. Motilal Oswal Financial | POWERGRID Infrastructure vs. Ankit Metal Power |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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