Correlation Between Elin Electronics and V2 Retail
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By analyzing existing cross correlation between Elin Electronics Limited and V2 Retail Limited, you can compare the effects of market volatilities on Elin Electronics and V2 Retail 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 V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and V2 Retail.
Diversification Opportunities for Elin Electronics and V2 Retail
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elin and V2RETAIL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics Limited and V2 Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2 Retail 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 V2 Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2 Retail Limited has no effect on the direction of Elin Electronics i.e., Elin Electronics and V2 Retail go up and down completely randomly.
Pair Corralation between Elin Electronics and V2 Retail
Assuming the 90 days trading horizon Elin Electronics is expected to generate 5.3 times less return on investment than V2 Retail. But when comparing it to its historical volatility, Elin Electronics Limited is 1.21 times less risky than V2 Retail. It trades about 0.12 of its potential returns per unit of risk. V2 Retail Limited is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 109,745 in V2 Retail Limited on September 14, 2024 and sell it today you would earn a total of 29,525 from holding V2 Retail Limited or generate 26.9% 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. V2 Retail Limited
Performance |
| Timeline |
| Elin Electronics |
| V2 Retail Limited |
Elin Electronics and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and V2 Retail
The main advantage of trading using opposite Elin Electronics and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics position performs unexpectedly, V2 Retail 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 V2 Retail will offset losses from the drop in V2 Retail'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 |
| V2 Retail vs. UCO Bank | V2 Retail vs. Karur Vysya Bank | V2 Retail vs. Max Financial Services | V2 Retail vs. City Union Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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