Correlation Between Electronics Mart and Kilitch Drugs
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By analyzing existing cross correlation between Electronics Mart India and Kilitch Drugs Limited, you can compare the effects of market volatilities on Electronics Mart and Kilitch Drugs 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 Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and Kilitch Drugs.
Diversification Opportunities for Electronics Mart and Kilitch Drugs
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Electronics and Kilitch is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs Limited 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 Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of Electronics Mart i.e., Electronics Mart and Kilitch Drugs go up and down completely randomly.
Pair Corralation between Electronics Mart and Kilitch Drugs
Assuming the 90 days trading horizon Electronics Mart India is expected to under-perform the Kilitch Drugs. In addition to that, Electronics Mart is 1.0 times more volatile than Kilitch Drugs Limited. It trades about -0.17 of its total potential returns per unit of risk. Kilitch Drugs Limited is currently generating about -0.01 per unit of volatility. If you would invest 33,280 in Kilitch Drugs Limited on November 28, 2024 and sell it today you would lose (2,025) from holding Kilitch Drugs Limited or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronics Mart India vs. Kilitch Drugs Limited
Performance |
| Timeline |
| Electronics Mart India |
| Kilitch Drugs Limited |
Electronics Mart and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and Kilitch Drugs
The main advantage of trading using opposite Electronics Mart and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' long position.| Electronics Mart vs. Home First Finance | Electronics Mart vs. Beta Drugs | Electronics Mart vs. Embassy Office Parks | Electronics Mart vs. Indraprastha Medical |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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