Correlation Between Electronics Mart and Geojit Financial
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By analyzing existing cross correlation between Electronics Mart India and Geojit Financial Services, you can compare the effects of market volatilities on Electronics Mart and Geojit Financial 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 Geojit Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and Geojit Financial.
Diversification Opportunities for Electronics Mart and Geojit Financial
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Electronics and Geojit is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and Geojit Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geojit Financial Services 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 Geojit Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geojit Financial Services has no effect on the direction of Electronics Mart i.e., Electronics Mart and Geojit Financial go up and down completely randomly.
Pair Corralation between Electronics Mart and Geojit Financial
Assuming the 90 days trading horizon Electronics Mart India is expected to generate 1.13 times more return on investment than Geojit Financial. However, Electronics Mart is 1.13 times more volatile than Geojit Financial Services. It trades about -0.06 of its potential returns per unit of risk. Geojit Financial Services is currently generating about -0.08 per unit of risk. If you would invest 19,134 in Electronics Mart India on September 1, 2024 and sell it today you would lose (1,127) from holding Electronics Mart India or give up 5.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronics Mart India vs. Geojit Financial Services
Performance |
| Timeline |
| Electronics Mart India |
| Geojit Financial Services |
Electronics Mart and Geojit Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and Geojit Financial
The main advantage of trading using opposite Electronics Mart and Geojit Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, Geojit Financial 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 Geojit Financial will offset losses from the drop in Geojit Financial's long position.| Electronics Mart vs. Osia Hyper Retail | Electronics Mart vs. Shree Pushkar Chemicals | Electronics Mart vs. UFO Moviez India | Electronics Mart vs. Mangalore Chemicals Fertilizers |
| Geojit Financial vs. Praxis Home Retail | Geojit Financial vs. Hybrid Financial Services | Geojit Financial vs. Karur Vysya Bank | Geojit Financial vs. Life Insurance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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