Correlation Between Electronics Mart and CREDITACCESS GRAMEEN
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By analyzing existing cross correlation between Electronics Mart India and CREDITACCESS GRAMEEN LIMITED, you can compare the effects of market volatilities on Electronics Mart and CREDITACCESS GRAMEEN 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 Electronics Mart with a short position of CREDITACCESS GRAMEEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and CREDITACCESS GRAMEEN.
Diversification Opportunities for Electronics Mart and CREDITACCESS GRAMEEN
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electronics and CREDITACCESS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and CREDITACCESS GRAMEEN LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDITACCESS GRAMEEN and Electronics Mart 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 Electronics Mart India are associated (or correlated) with CREDITACCESS GRAMEEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDITACCESS GRAMEEN has no effect on the direction of Electronics Mart i.e., Electronics Mart and CREDITACCESS GRAMEEN go up and down completely randomly.
Pair Corralation between Electronics Mart and CREDITACCESS GRAMEEN
Assuming the 90 days trading horizon Electronics Mart India is expected to under-perform the CREDITACCESS GRAMEEN. But the stock apears to be less risky and, when comparing its historical volatility, Electronics Mart India is 2.2 times less risky than CREDITACCESS GRAMEEN. The stock trades about -0.05 of its potential returns per unit of risk. The CREDITACCESS GRAMEEN LIMITED is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 91,110 in CREDITACCESS GRAMEEN LIMITED on November 8, 2024 and sell it today you would earn a total of 16,590 from holding CREDITACCESS GRAMEEN LIMITED or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronics Mart India vs. CREDITACCESS GRAMEEN LIMITED
Performance |
| Timeline |
| Electronics Mart India |
| CREDITACCESS GRAMEEN |
Electronics Mart and CREDITACCESS GRAMEEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and CREDITACCESS GRAMEEN
The main advantage of trading using opposite Electronics Mart and CREDITACCESS GRAMEEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN will offset losses from the drop in CREDITACCESS GRAMEEN's long position.| Electronics Mart vs. SAL Steel Limited | Electronics Mart vs. JSW Steel Limited | Electronics Mart vs. Prakash Steelage Limited | Electronics Mart vs. Steel Authority of |
| CREDITACCESS GRAMEEN vs. Future Retail Limited | CREDITACCESS GRAMEEN vs. Akme Fintrade India | CREDITACCESS GRAMEEN vs. Fine Organic Industries | CREDITACCESS GRAMEEN vs. Hindustan Foods 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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